Markent Sentiment: Bull Cross or Bull Trap?
The recent rally has put a little bit of fire into breadth's belly. However, not all breadth indicators took the bait. The Nasdaq Bullish Percents is best placed with the bullish cross of the 5-day EMA as the Ultimate Oscillator worked a 'buy' signal from oversold conditions. Whether this evolves into a bull trap or a genuine 'buy' signal remains to be seen but it's a positive at least (and is still a good 5 points away from traditional bull market overbought levels).
![](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_uUY2t42EB-A3oJHT59frQTp_d7Zzh8izPhUgu6zqdaRZ2vlsfTogGlCSOzhsmQBIR3-5kIrPxh75_ZGS-RZhXyzuSpgsqW4XUXnjrOm6bK-h1anxgCoR4PWU3TSm0adgkysD9cpzBK=s0-d)
I was surprised not to see a stronger technical response for the Percentage of Stocks above the 50-day MA. Given we are near the highs of June the indicator shows 30% fewer stocks trading above this key moving average than back at the start of May when it peaked. This is a bad omen and a potential low risk short using June highs as a stop.
![](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_s-Ia5OoSVO96Sb6ZI4wwm6gcijic-uBOtnNyIV9SvnEvQye0u70vAbZm-twMq_r9d001lHSuuVlN7FbPP1wvuQI-bzrALFNnqi39CUDcliNvTo2jFvKW4_OByiIBOe_vQiYdQ=s0-d)
Buyer beware...(again)
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.
I was surprised not to see a stronger technical response for the Percentage of Stocks above the 50-day MA. Given we are near the highs of June the indicator shows 30% fewer stocks trading above this key moving average than back at the start of May when it peaked. This is a bad omen and a potential low risk short using June highs as a stop.
Buyer beware...(again)
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.