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fib_1618

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Please note that the date axis has been adjusted this week to provide better analytical value moving forward.

Well minus a one week period of weakness culminating with "Black Friday", equity market prices have now returned to pretty much where we were at the middle of November...in and around the apex point of our symmetrical triangles seen earlier in the month. The market internals, however, were a bit lethargic during this recent run up, so some sort of backing and filling (a retest of the recent lows) would be the near term expectation to correct this inconsistency between money flow and prices.

Good news for the bulls this week comes from the Bond CEF advance/decline line which continues to move into new all time high territory. If past history is any indication, as long as this money flow component continues rising, it highly suggests that equity prices should remain rather buoyant while it waits for the current indigestion period to finally pass.

Meanwhile, the Preferred stock advance/decline line continues to find near term support on its longer term rising bottoms line though it remains below its all time highs. The expectation here is that the broader market averages will not be able to move to new highs until we see higher highs with this specific money flow component. A break of this same trend line, therefore, would probably have short term negative implications for the equity markets in general.

In other news, the price of gold continues to trace out a large symmetrical triangle while the broader market Precious Metals advance/decline line has agreed with this indecision by moving net sideways. Whichever way this A/D line finally breaks out, the price of gold will probably follow its lead.

Finally, the REIT advance/decline line continues to go nowhere fast while it waits for a remedy to the current global debt problems. A break in either direction from this period of indecision should be taken as a indication of the preferred direction of prices moving forward.

US Equity Markets:









US Interest Rates:



US Real Estate:



Precious Metals:






Australia:



England:



Germany:




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