5.16.2007

DIVERGENCE


Markets are acting a little wacky as the various indexes are no longer n'sync. Witness the various 2 day RSI's:


DJIA -94

OEX -90

SPX -83

DWC-75

MID-66

QQQQ-64

IWM-49


Large Cap Growth-78

Small Cap Growth-54

Large Cap Value-90

Small Cap Value-57


XLE-89

CMR-87

DRG-85

TRAN-85

BKX-83

DFX-73

XBD-41

RLX-40

SOX-19

HUI-10

IYR -8


In addition, the adv/dec lines have been weaker than the major indexes - the question becomes which way now? Do the indexes follow the breadth lower or will it improve taking the indexes higher - my guess - yes, higher - at least to 1,527 on the SPX- only another 13 points or less than 1% and regardless what the journalists on CNBC tell you, the all time high on the SPX is 1,553 on March 24, 2000 (you can look it up).






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