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

Thursday, February 01, 2007


Even in a one-way market there was something to hang our hats onto.
In the process, the SPX managed to hit an important target, and is one day away from getting overbought. An overbought market tomorrow will fit perfectly with the next CIT date.

A quick note re. the daily and weekly signals on the second and third calendar.
I stopped updating the daily signals once the market entered a trading range. Since the signals are generated by a simple trend-following system, they are inevitably subject to whipsaws in trading range markets, and there is no need to clutter the calendar with false signals. Different trading environments require different trading tools. Normally, the signal should have been changed again yesterday, but I’ll have my thoughts on the subject after the week-end.

With regard to the weekly signals: we’ve never even come close to a sell signal yet. And that would certainly qualify as one of the longest buy periods for that particular signal.
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