Market Internals 2012-06-17
By Lawrence Chan
on 2012 Jun 17 Sun 8:28:29 
The market internal updates is turning into a monthly update …
First I was told that I need to post the chart here so that there is a reference to what I am talking about. So here it is the current snapshot of 3-Day Advance Issues, Tick16 Short Term + Long Term as of 2012 Jun 15 Close.
Readings
1. 3-Day Advance Issues is having a divergence sell setup as S&P is pushing a higher high while the indicator is not
2. Tick16 ST is very overbought
3. Tick16 LT back above neutral zone
Inference
#1 and #2 tell us that a pullback is due within a week for about a week to 2 weeks
#3 tells us that first pullback is a buy
So, once the 3-Day Advance or Tick16 ST going back down to their respective oversold levels, S&P should get another push higher
Let me know if you like this new format.
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Got our oversold reading as of last Friday.
Notice it was very difficult to time if you try to fade the top without the breadth information.
If Monday/Tuesday we get a low, S&P is good for another pop higher.
The expectation is that a low should be formed within 20 pts from prev. week low.
Nailed the low. And a wild run for a week.
Now that 3-Day Advance has first touch of its upper boundary, it has completed the first objective for this long.
Sometimes, targeting is not necessarily based on price =)