Zweig Breadth Thrust has once again pushed above the overbought level of 60 and closed out the day at 60.87, so this is showing overboughtness.
4wk New High/Low Ratio closed out the day at 93.52, which is its highest close going back to late October just prior to the decline that lasted into late November.
$NYADV pushed to 2504 today, when 2500 is the line in the sand.
$NYAD, the daily, pushed to 1983 today when 1800 is the line in the sand.
$NYHILO (copy that link and follow the chart) has pushed to 87 and could push above 90 this week. You can see on the linked chart that pull backs of one degree or another happen after $NYHILO gets into the low 90’s.
Based on all of the above, I have to expect some kind of pause in the action tomorrow. However, if the markets should rally then breadth indicators are just going to push deeper into overbought territory. For instance, $NYSI is now at 1139 and just couple more rally days will push it to or above 1200, an important overbought benchmark. Also $USHL5 has pushed up to 1936. It should go higher but when it gets up to the 2400/2500, which could take 4-5 more days, it will be showing overbought.
When it comes to market turning points, timing is everything and I believe, as I have for the past couple of weeks, that we are approaching a turning point. Could start tomorrow or maybe next week, but breadth indicators can only get stretched so far before they start to show signs of stress which is marked in the markets with a pullback. Okay, and I’m just going to cry wolf until a damn wolf shows up. So there.
60min SPY chart showing that SPY managed to get back inside the rising trend line and today the 13EMA crossed up through the 34EMA in a fresh ‘buy’ signal, though I’m not buying.
Chart courtesy of FreeStockCharts.com
Daily $SPX chart showing that the 5EMA, which had been rolling over for prior three sessions, righted itself today and pulled slightly away from the 10EMA so there is no ‘sell’ signal generated using this method, yet.
Just be careful until we see how all of this shakes out.