Here is a line chart showing the daily count of the number of issues traded on the New York Stock Exchange that advance in price (black line) and the 5 day moving average of that number (purple line). I last commented on this indicator here.
You will notice that today's count is relatively high and also higher than yesterday's. This despite the fact that the S&P 500 cash is up a little more than a point and the Dow Industrials are actually down 2 points.
This is a very bullish "divergence" in my opinion. It strengthens my conviction that the market is still strong and destined to move above the 1400 level soon.
1 comment:
dear sir
i wish to thank you for you work
but today i also wish to respectfully argue a few points .
if the linsay time spans were based on the spx would you move you timeframe forward 60 days roughly to include mid to late feb 2007 for a top ?? assuming the nov 20th date turns into a bottom .
also i think if lindsay was alive over the past 20 yrs he would also have recognised the larger 3 peaks domed house with in larger time spans . what im bring to this is
what if the dow holds up into feb 7th 2007 then declines and holds above 10700 next yr ( your smaller
point 10 ) ???? i say this because i am a pattern trader yet i use larger patterns with in patterns
and i think you might ( only might )be overlooking the larger 3 peaks domed house pattern that began in 1997 . so a 10 year time frame versus a lindsay 5 yr time frame ( regarding mid section )
point 10 is 7197 when looking at this ( i realise not textbook by lindsay's work with this pattern )
but it is a text book 3 peaks domed house pattern both monthly and weekly . and it fits what your saying ( yet your showing pt 27 as the top ) that is why i think your over looking the larger pattern becasue you work is all text book lindsay . ill be honest i like that you dont alter lindsay's work to fit . but i still think your missing the larger pattern . and while i realise it means altering
what your work shows . it is in my opinion what is going on . i would not be suprised to see your nov 21-29 time frame as a low in the stock market which is followed by a top into january or febuary 2007 .
and also would not be suprised to
see a point 22 low near 11,000 on the weekly 3 peaks domed house pattern . ( monthly were in point 23 from june 2006 lows .
what we have is an entire new set of parameters regrading time spans
with in the 3 peaks domed house
pattern ( something lindsays was
not alive to see or write about )
so you will come to terms with your smaller count next yr if the dow fails to get below 10700
just something to think of is all
like i stated above just a respectful arguement i wish to make . overall i think you do good work and while i think you get
a it scattered from time to time regarding the short term flucuations overall i have to say
you get it right more then wrong .
my email is fiborules@yahoo.com
if you wish to dig into what im saying more in depth regarding the
weekly and monthly pattern im talking about . i have been following for far to long to change it .
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