The Daily Chartist: Bulls, Bears and Half a Glass

You can read what you want into the recent rally, depending on whether you're an optimist or a pessimist.
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July 1

The week's rally can be seen as the glass being half-full or half-empty.

The advance/decline line has put in an excellent performance, which is bullish. However, on a longer-term as well as an intermediate-term basis, it is failing miserably against its April highs and even more so against its November highs.

In addition, the number of stocks at new highs is quite impressive, too. Yesterday's new high in the

S&P

found this statistic at 169, just four shy of the reading at the April highs. It can be seen as bullish because it's moving in the right direction, or it can be seen as bearish because it failed to exceed the previous reading, even though the S&P went on to make a new high.

An awful lot of window-dressing appeared at the end of the quarter in the individual stock charts. Many of the stocks that have lately been down and out rallied quite strongly into the close. I suspect we will back and fill before rallying again, at which point we can determine if the improvement in the statistics is real or just end-of-quarter mark-ups.

New Highs and New Lows

Overbought/Oversold Oscillator

Cumulative Advance/Decline Line

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 any securities 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

KPMHSM@aol.com.