I experienced some "technical difficulties" when attempting to get this report published yesterday morning. Between a new location for files, a new laptop, and the fact I was attempting to publish in the wee hours from a hotel room, well, I'm sorry to say that things just didn't work out. But, time and some technical assistance cured my ills and so we will file this under the category of better late than never. To review, the primary goal of this exercise is to try and remove any subjective notions about what "should" be happening in the market in an attempt to stay in line with what "is" happening in the markets. So, let's get started.
The State of the Trend
We start our review each week with a look at the "state of the trend." These indicators are designed to give us a feel for the overall health of the current short- and intermediate-term trend models.
- With the S&P 500 closing at yet another all-time high on Friday, it is not surprising to see all of our Trend Models positive this morning.
- Ditto of the Channel Breakout Systems. P.S. a breakout to new highs represents a renewed buy signal from this trend-oriented system.
- After being completely out of sync with the trend over the past month and a half, the Cycle Composite is positive this week - but remains choppy for much of the month.
- The Trading Mode models confirm that the major indices are in a "trending" mode at this time. Feel free to put this one in the "duh" category.
The State of Internal Momentum
Next up are the momentum indicators, which are designed to tell us whether there is any "oomph" behind the current trend.