Tuesday, December 7, 2010

Summation Index Still On Sell Signal

New highs in the SP500 and the NYSE were not confirmed by the NYSE Summation Index. The Summation Index remains on a sell signal as its MACD is below its signal line and the zero line. A MACD hook sell setup is now in place which would be triggered by a fall to new lows in the MACD. It also appears that the Summation Index is about to break long term support around the 400 level.

Whether or not the expected selloff is just wave [c] of minor wave 4 or represents the beginning of wave C of (B) is still open for debate. As I have said before, it will probably be December 20 or thereabouts before we can know for sure.

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