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fib_1618

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However, this higher imbalance in the sell to buy ratio was large enough to where many of our short term indicators, such as the McClellan Oscillator and this week's BETS indicator reading of +20, now strongly suggest that we're not likely to see much more improvement than what was seen on Friday, and that a defensive posture should now be maintained for the next couple of weeks.

Well...after we got some momentum follow through from last Friday's reflex rally to start the week, equities rolled over on Tuesday, and then broke to new lows on Wednesday, in a week where the major market indices closed down about 1.6% on average.

Looking at the breadth chart array this week and we see that selling was particularly heavy in the interest rate sensitive area, and to a lesser extent in the precious metals stocks, as government data continues to suggest that the US economy is showing definitive signs of expansion which would put added pressure on the FED to consider ending their highly accomodative monetary policy stance sooner than later. We should know more on what they're thinking this coming Wednesday when both the monetary statement and Bernanke's last news conference are made available for consumption.

Finally, the BETS indicator saw some follow through to the downside as it moved to a -5 this week putting it below the zero line for the first time since since July 5th. Along with Wednesday's technical breakdown where we saw many of the McClellan indicators moving to new lows, this would continue to suggest our maintaining a defensive posture in what now should be a correctional sequence that will likely conclude before the early part of February.

Have a great week of trading!

US Equity Markets:

[breadthspx121313]



[breadthdjia121313]


[breadthspec121313]


[breadthpre121313]

US Interest Rates:

[breadthtnx121313]

US Real Estate:

[breadthreit121313]

Precious Metals:

[breadthpm121313]


[breadthxau121313]

Australia:

[breadthaus121313]

England:

[breadthftse121313]

Germany:

[breadthdax121313]

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