By Liz DeMera

The NYSE Summation (raw data) requires +2000 advancers to haltĀ its downward direction.

mcclellan

The down direction is not a positive sign for the market. When the market rallies this is something we want to watch carefully as a failure to get through +2500 area (see chart below) could be a possible failure. A declining summation is not supportive of the market. Tom McClellan’s article written in Mid-November may becoming to fruition.

goodnysit
The chart below represents the NYSE 10 Day Moving Average of Advancers minus Decliners. Based on what is dropping off the moving average we should get a oversold rally between Wednesday and Friday of this week. I highlighted in yellow where the line could be. The area usually represents a bounce.
nyad1
The big dilemma I see is the 30 day moving average chart below is reaching a intermediate overbought condition.(Highlighted in yellow).It’s very hard to put on a swing long with this being so high up here. If I go long it will be for a very quick trade. I prefer a swing long setup when both the 10 day MA and the 30 Day MA are BOTH in very negative territory together. The 30 day will not be oversold until possibly the first week of February.
nyad2

This was written by @lizdemera , who uses stock market technicals to determine the markets possible future performance.

Related Posts:

NYSE Summation Update

A Rising NYSE Summation Index Is Bullish

Market Internals Point To A Significant Bottom

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