May
17

Overview of Short-term Signals Set to Trigger

By on Monday, May 17th, 2010 at 3:14 pm

Quick review of short-term signals that could be triggered at today’s close…

The Nasdaq100 is outperforming the Nasdaq Composite for the second day in a row Monday. NDX will trigger a 1-2 day buy setup if it closes down 0.5% or more and continues to outperform the Nasdaq Composite. See May 7th commentary.

The two-day buy setup involving an oversold McClellan (discussed in this May 7th column) is set to trigger today.

S&P futures currently trading above today’s midpoint of 1126.60 in spite of 2:1 negative breadth. If this afternoon recovery sticks and futures settle above the midpoint while the advance/decline ratio holds below .50, it would trigger a 1-2 day sell signal similar to the one almost triggered Friday.

If the S&P manages to close higher today, it would trigger a 1-2 day sell given the sharp intraday selloff – see this February 7th column.

While it looks like we could see a mixed outlook for the short-term based on the signals above, I would tend to overweight sell signals if triggered.

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Comments, data and trading signals herein are for informational purposes only and are not recommendations to buy or sell. All information presented is believed to be accurate but is not guaranteed.