“90% up day” of gigantic proportions

By Lawrence G. McMillan

In the continuing roller coaster that is this market, Monday was a “90% up day” of gigantic proportions.  Advancing volume led declining volume by a nearly 40-to-1 margin, driving the Arms Index down to a near-historic-low of 0.12 for the day.  It was a pure “90% up day” in terms of “Stocks only” data, and a “90% up volume day” in terms of NYSE-data.  However, as strong as it was, it did not change the bearish slant of the intermediate-term indicators.  In fact, the “90% up day” cancels out the previous oversold condition and introduces the fact that a sharp declining day is now “due” soon.

The chart of $SPX is still negative, but this rally could continue to about the 20-day moving average, which is currently at 1125.  The equity-only put-call ratios remain on sell signals, although the standard ratio has moved lower over the past two days – but not far enough to generate a buy signal...  

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