If we can hold this morning's gap, we should since there is no econ news before 10am this morning, the 52 week new highs indicator should spike right at the open. All those stocks that are close will be pushed up into new yearly territory. Today's hurdle bars, the bar being replaced in the moving average, are all quite high today for each index. The NYSE moving average moved yesterday from 109 to 110. That is a small improvement, but any improvement is a potential buy signal. The 10 Day High - Low on the SPx also issued a buy signal at the close yesterday.
Based on the indicators closings I took a small SPY position just to honor the indicators. It was not big enough to totally hedge my TZA position I was also holding to honor the RUT indicator which is still on the sell side.
Today's gap will most likely consolidate all the indicators into the buy zone. It is hard to believe that we are going to get a thrust up form here but that looks like what might be setting up. The 52 week new highs will be a good tell today.
The NYSE's hurdle bar today is 192. We must close today with more than 192 NYSE issues making new 52 week highs in order to strengthen and confirm the NYSE buy signal. Statistically that means we need to be between 100 and 120 by 10am this morning. Watch in the room or follow my data tweets http://twitter.com/redsdata for a 30 minute update on the new highs today.
Or better yet, join us live in our trading room at http://ttthedge.com
- RLT
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