Wednesday, October 21, 2009
Morning Briefing for October 21st: Some Deterioration Among Indicators
We continue within the multiday trading range this morning before the open, in what I continue to view as topping action. Over 500 NYSE, NASDAQ, and ASE stocks registered 20-day lows yesterday, and we're starting to see more signs of trend breakdown: 14 of my 40 stocks in the basket are now either in short-term neutral or downtrending modes. Small cap issues are already near their 10/13 lows, indicating underperformance. I will continue to be looking for signs of strengthening vs. weakening in the indicators; I update the indicators daily prior to the market open via Twitter.