NYA accumulation level showed improvement yesterday but.... It took a lot of money to have the NYA index's accumulation to rise above its recent high that was made last November. Now there is a possible conflict of beliefs versus ecnomic suggestions. What are we talking about? It turns out that the Fed thinks that all is roses if they keep enough money going into the market, because investors will want their piece of the action. At the same time there are many institutional investors who believe that the economy and the world conditions are not as good as they are projected and they are having trouble buying into the "all roses" theory. so we are about to see who has the clout now... the Fed or institutional investors?
Staring from May 28 of 2015 more stocks listed in the NYSE Composite index are traded closer to their 52 week lows. For almost two months when we have more bearish stocks on the market. Right now, 1784 stocks from the NYSE index traded closer to their 52 weeks lows, 621 of which are traded in the 5% range from their 52 week lows: http://www.marketvolume.com/quotes/breadthindexhighlowrangechart.asp?s=NYA&r=50 Yes, the major market indexes, the S&P 500, DJI and Nasdaq 100 are at their historical highs. On the other hand, when you look at the DJT and DJU you will see that these indexes are already in the deep correction. The S&P 500, DJI and Nasdaq 100 are comprised of the strongest companies on the market. So far, the majority of the S&P 500 stocks are still closer to their 52-week highs, 266 versus 234 and this is positive sign: http://www.marketvolume.com/quotes/breadthindexhighlowrangechart.asp?s=SPX&r=50 However, 81 of the S&P 500 listed stocks are traded in the 5% range from their 52 weeks lows: http://www.marketvolume.com/quotes/breadthindexhighlowrangechart.asp?s=SPX&r=5 It is not started yesterday and it is not started a week ago. We have the major market indexes in the range side-way trading since February 2015 and many of the stocks are in decline for a couple of months. When the majority of the stocks are in the heavy correction, how long do you think the strongest companies like AAPL, AMZN and other can hold the major indexes at the top. I am not suggesting the market will crash, but I would say there are a lot of points to consider: 1. Dollar getting stronger and it does not looks it will change its trend 2. FED rate most likely coming 3. Oil getting cheaper 4. Greece still can generate quite negative surprises 5. China market is in recession 6. Most stocks on the NYSE in a deep correction 7. When news are released, market react on negative news and ignore positive ones. Example, AAPL good earnings and bad expectations.. 8. Some market indexes are already in the deep correction (DJU, DJT and etc)