Monday March 1 2010
THe markets are exhibiting the first real setback since the launch last March 9. The pullback in July never turned MACD down at bottom. But the long slow drawn out top from this fall finally has. Is it significant? Well fewer stocks are participating. The first of the month brings cash inflows from retirement funds and we are up this morning.
Lower highs, lower lows, that is a bear market. The number of stocks holding above their 50 day Moving Averages is declining. The breadth then is lower, less participation overall no matter that the averages are still high. This is the way a stealth bear market starts, fewer and fewer at the party. It will be important to see if stocks snap back this month.
Professor Elam 
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