Measured by our ‘Overall Market Ratings’ (‘OMRs’) the FTSE 350 and the S&P 500 have both moved quite strongly again indicating a continued progression towards a new ‘bull’ market. They both are now reading at 71 (out of a potential 100). However, the OMRs of both these major markets must, for the time being, still be considered as indicating a potential ‘bull’ market trend rather than an actual ‘bull’ market as the majority of stocks are still in a ‘Stage 1′ Basing trend. Not until the number of stocks in a Stage 1 trend have swung into a Stage 2 trend and the number in each phase is better balanced can we be confident that a full blown new ‘bull’ market is in progress.
But, for the moment, the signals are reasonably positive although the FTSE 100 and S&P 500 are both under resistance levels and this could lead to a stall in prices this week. Selective, and slight, buying of stocks in these markets remains the wisdom as, although we are pretty certain that the final lows of the markets occurred in January, ther still remains the possibility of a ‘double-dip’ low. But the liklihood of this becomes less and less as the market indices continue their upward trends.
The FTSE 250 and the Nasdaq 100 remain the most upwardly aggressive markets. Our ‘MA’s kiss’ (the upward signalling cross-over of the 13 wk and 34wk Exponential Moving Averages) has already happened on the FTSE 250 and is in process this week for the Nasdaq 100 index. The ‘kiss’ for the S&P 500, the DJIA and the FTSE 100 is still a few weeks off.
Suggest you stay wary, stay selective and stay small(ish).
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