BIGGEST ARMS

Dick Arms of ARMS INDEX fame and a realmoney contributor has an interesting take on the markets today:

"In the last few days, the averages have indeed moved higher, but not dramatically. They are all, even the S&P 500, which had shown good strength earlier, butting up against the old highs and acting reluctant to get going.

What bothers me most is the fact that we have had bullish Arms Index numbers in the interim and they have been offsetting more bearish numbers on the shorter-term moving averages. Now the 10-day Arms Index moving average has gone to a level that could no longer be called oversold and is, in fact, somewhat overbought. The same can be said of the five-day. At this point, we may lack the underlying impetus needed to bring about a good advance.

Because the averages are still moving upward and the AI numbers are not at an extreme, I still suggest continuing to hold long positions, but I am becoming concerned about the shift in the AI."

Dick notes that he is concerned about holding long positons and I think it is time to abandon longs. Not sure if this is the high but I would rather sell too soon than too late. Besides, all of my short term indicators have aligned.