Good morning. Although we're getting a late start to the week, market analysis definitely falls into the "better late than never" category. So, let's go ahead and review my key market models/indicators and see where we stand. 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.
- The short-term Trend Model likes nothing more than new all-time highs.
- Both Channel Breakout Systems remain on their 8/22 buy signals and are in stellar shape.
- Not surprising that the intermediate- and long-term Trend Models are solidly positive.
- The market continues to thumb its nose at the historical cycles, which means that the Cycle Composite is currently "out of whack" with what the market "is" doing.
- Two of the three Trading Mode models now indicate the market is in a trending environment. The fact that these models have lagged and that one is still in "mean reversion" mode suggests that the current move doesn't have a lot of "oomph" behind it.
- Overall though, not much to complain about from a trend standpoint.
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...
- Both the short- and intermediate-term Trend and Breadth Confirm Models remain positive. This tells us that "market breadth" ...