The sequence continues with statistics improving on down days and worsening on up days. Until this tug of war between bulls and bears is resolved, we can expect more of the same type of action we've seen lately: lots of up and down, essentially going nowhere.
Currently still in an oversold condition, the market will continue to stretch higher over the next few days. What we look for in terms of improved market health is a better advance/decline line on up days (not the paltry plus-52 reading we saw on Thursday) and an expansion of stocks at new highs (at least more than the 82 we saw in mid-March). If we get those, then a move over 10,000 may just be sustainable. If not, expect another swing down when momentum gets back to an overbought level.
New Highs and New Lows
Cumulative Advance/Decline Line
Author's note: I am on vacation for the remainder of the week. The next daily update will be on Monday, April 12.
Helene Meisler, based in Singapore, writes a technical analysis column on the U.S. equity markets on Tuesdays and Fridays, and updates her charts daily on TheStreet.com. Meisler trained at several Wall Street firms, including Goldman Sachs and Cowen, and has worked with the equity trading department at Cargill. At time of publication, she held no positions in the stocks mentioned in this column, although holdings can change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. She appreciates your feedback at