The good news is that the number of stocks making new lows is not expanding.

Lines. Lines. Everywhere are lines.

We discussed the uptrend pedigree in the Dow endmost workweek. Unnecessary to say it finally broke on Fri. If you role just lines on the chart - not inevitably how I view the market, since I favor indicators to lines - you buttocks see the derriere of support now shows up around 34,000.

Withal no one looks at the Dow as you know. They watch the S&P 500. And the S&P 500 has a line as well. The Dow's line goes back to February (so it's longer in duration than the S&P 500) while the S&P's goes back to May. The S&P 500 has five touches on its line, which means it's a good line, overly. You can see that after Friday's decline, IT is now closing in on the lower furrow.

The upper line has been a good channelize for us since the bounce when information technology comes to pullbacks, so on that point is No reason to think the lower line shouldn't make up good support either even though my guess is the lower line will express up along every sort on that point by Monday, if not before. Put differently, it is quite an obvious, and I prefer when we break a line everyone watches because that creates a better shakeout.

If we take the indicators or else of the lines, it's a different picture. My own Overbought/Oversold Oscillator is not oversold. I can't pull through get oversold either as the math behind it says it South Korean won't be oversold until later this week. Notice that IT is still hovering just now finished the zero railway line for both the NYSE and Nasdaq.

If you prefer a different visual on the oversold condition, then permit's use the 'what if' for the McClellan Summation Indicator. Here we discove what IT will go for turn the Addition Index from the current down to game up. Presently, it requires a net differential of +1,400 advancers minus decliners on the NYSE. At +2,000, it steps a toe into oversold dominio. So here too, it says some more downside would cotton on to an oversold condition.

Sol we have a market that is getting careful to support but not quite oversold yet.

The good news is that the number of stocks making new lows is not expanding. Recall most of the summertime my complaints were how new lows refused to cut. That is non the case now because last week they sold their loved mega detonating device tech stocks, not the stuff that has been down and out.

The other good news? My Saturday Twitter Poll showed 59% looking for Thomas More downside for the S&ere;P and 41% looking for upside. In the last 16 months that I have been running play this pate, each time the spread was that wide the S&P power saw an up week. Twice it began the calendar week on the downside though. That would beryllium my preferred scenario (more or less much down first) because I'd comparable to get those indicators oversold. Will the market accommodate me?

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