Market Breadth Data******************************

Sunday, January 07, 2007



In December, I pointed out that the S&P was forming negative divergences with money flow. This is usually a sign of distribution associated with market tops. There has been no damage to the weekly trend so far, but the daily chart shows lower highs and lower lows.

The market is getting oversold and the first CIT date for 2007 is on Jan 11th. The next few swings, I believe, will be crucial in determining whether we stay in a trading range or break out of it. As usual, the Zero Gann lines and the support/resistance levels will provide the answer.

In addition to the CIT dates marked on the chart and calendar, there are short term cycle turns on Jan 21st, 23rd and 30th. These cycles, so far, have been more closely associated with intraday moves, so I’ll keep them separate.
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