Dec
02

Cumulative Breadth Making an Early Break?

By on Wednesday, December 2nd, 2009 at 9:07 pm

Strong NYSE TICK action once again Wednesday as institutions remained better buyers. TICKscore closed at +18, Cumulative TICK +65,000. S&P cash closed fractionally higher on the session, but S&P futures settled lower, fulfilling the short-term sell setup discussed yesterday. New highs continued to build on both a short and long-term time frame – 52-week highs increased on both the NYSE and NASDAQ as did 20-day highs across all exchanges. The 10-day moving average of the CBOE equity put/call ratio has rolled over and is trending lower, a positive sign for stocks. Breadth closed nearly 2:1 positive on the NYSE, sending the Cumulative Breadth line into new highs for the year (it just cleared the mid-October high). In general, the stage appears to be set for an upside breakout. If the Last Hour indicator is going to resume its downtrend, as I suspect it will, the recent trend of strong up moves in the morning should be a recurring theme going forward.

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