Thursday, February 07, 2008

Bullish Percents wavering

Wednesday's selling - the third day of selling in a row - has started to pressurize the Bullish Percents and the validity of the January bottom. The Nasdaq bottom remains healthy and looks to be part of a bullish retest of prior lows.

The Dow Bullish Percents have breached their 5-day EMA (bearish), but remain in deep oversold territory.

More worrying is a similar breach of the 5-day EMA for the S&P Bullish Percents, but unlike the Dow, the crossover occurred away from oversold levels. Watch for the S&P to lead a break to the downside and through January lows.

Both Nasdaq and NYSE McClellan Oscillators finished in positive territory which is bullish (just!).