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Other than that, there's not much more to report that hasn't already been reviewed over the last couple of weeks, with the buyers remaining in control of the action on an intermediate term basis. The rest of November, therefore, should continue to show a bullish bias in equity trading patterns overall.
Another week of market action come and gone with the major indices closing again near their high points of the week. A quick review of the breadth charts show that the NYSE Composite, NYSE Common Only, NYSE Specialty CEF, NYSE Preferred and NYSE REIT advance/decline lines continue to maintain their multi week rising trend structures. This would indicate that the great majority (92%) of the issues traded on the NYSE remains buoyant at this time. However, the NYSE Bond CEF advance/decline line continued to show good selling pressure as it broke below its short term trend channel with Friday's close. This break should allow interest rates on the 10 year note to continue to move higher near term, but until we see a break below the August lows in the Bond A/D line, the 2.9% level should provide pattern resistance within our anticipated range bound sequence mentioned with the November 8th update. Last week's weakness in the Aussie advance/decline line did indeed give us the inside edge of this past weeks technical breakdown in the Precious Metals advance/decline line as it moved to new all time lows with Friday's settlement. Although the standard 16 component XAU advance/decline line came up a bit short of joining the PMAD line at new lows, the Yahoo 30 component XAU advance/decline line, of which we also maintain, did confirm the broader negative implication of these same multi month lows. Taken together then, this would further suggest a continuing defensive posture toward the precious metals at this time as they approach their multi month downside price target of around the $1156 level in the spot gold market. Overall then, equity prices continue to trend higher at an accelerated rate with any pauses and/or pullbacks providing near term opportunities for selective purchases as money quickly rotates from sectors that would be deemed overvalued to that of being either under or fairly valued...and as long as the small caps and secondaries (NASDAQ) maintain their bullish bias, the path of least resistance will remain with the buyers until proven to the contrary. Have a great Thanksgiving holiday! US Equity Markets : US Interest Rates : US Real Estate : Precious Metals: Australia: England: Germany: __________________ Dave's LinkedIn Profile Technical Watch Twitter Page Technical Watch Facebook Page "As for it being different this time, it is different every time. The question is in what way, and to what extent" - Tom McClellan "An economist is someone who sees something happen, and then wonders if it would work in theory" - Ronald Reagan "What we see depends mainly on what we look for" - John Lubbock "The eye sees only what the mind is ready to comprehend" - Henri Bergson “Answers are easy; it’s asking the right questions which is hard” - Dr. Who - 1977 "You know the very powerful and the very stupid have one thing in common - they don't alter their views to fit the facts, they alter the facts to fit their views (which can be uncomfortable if you happen to be one of the facts that needs altering)" - Dr. Who - 1977