Market Internals 2011-12-15By on 2011 Dec 15 Thu 8:27:20
The mega swings in the breadth have successfully forewarned and confirmed the swings of S&P over the past 5 swings.
The challenge at this point is that 3-Day Advance Issues is oversold and divergence bottom signal is in place since close of yesterday. Yet Tick16 Short Term is not quite there yet producing the oversold signal.
If a rally starts from here, the setup says it will be very explosive as Tick16 Long Term will likely move back to the positive territory after the prolonged stayed in the negative zone.
Seasonal bias turns from bearish to bullish starting today too so there is enough evidence that it is not a time to go short until after new year.