Monday, April 1, 2013

Ominous Market Signs

The market is displaying some signs that could indicate market weakness in the coming weeks ahead or perhaps a correction in the making.
The $TICK (short term) indicator above sold off from the start of the day and continued weak throughout the day to end in oversold territory. Typically we would like to see a bounce from the oversold territory as buyers step in.
The NYSE advance / decline line has been falling on a longer term basis for much of this year. This merits something to watch on a daily basis.
Leadership stocks like AAPL have sold off.  Apple has sold off the past four trading sessions and is heading toward it's 2013 low.  Let's see if a test of that low holds or does the stock create a new 2013 low in the days ahead putting pressure on the overall market.

Bottom Line:  Friday we have the release of the Non-Farm Payroll data, which tends to create a market reaction either way.  So perhaps that has the market on edge today as the short term $TICK indicator was weak throughout the entire day, and other intermediate term indicators have been looking rather weak over the past month.  Thank you for reading.

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