Indicator Summary Favors the Bulls, but the VXN Trends Higher
The bulk of the evidence remains bullish, but I am concerned that the major index ETFs may be forming lower highs. With the decline over the last six days, SPY and DIA peaked below their September highs and lower highs could be forming. Relative weakness in the Nasdaq is also a concern. These concerns are overshadowed by relative strength in the NYSE AD Line and AD Volume Line, and relative strength in small-caps. Also note that Net New Highs for the Nasdaq and the NYSE remain positive and the cumulative lines are above their 10-day EMAs.
