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fib_1618

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With the NYSE Composite breadth McClellan Summation Index also reaching "escape velocity" this week by moving above the +500 level (see cumulative charts), this should continue provide good buoyancy to stock prices as we finally move into next Friday's quarterly OPEX period. Because of this, let's look for equities to remain firm, with a bullish bias, throughout next week...

It was another good week for the market bulls as the major market indices were up by an average of 1.48%, week over week, as the Dow Industrials showed the largest gains of +2.26%, while the NASDAQ Composite group of issues brought up the rear with a gain of only .99%.

Looking over this weeks of breadth charts array shows very little in the way of technical changes from last week's review as many remain in accelerated rising structures. Of particular note, the Investment Grade advance/decline line rose sharply to the upside with CORP moving up a strong 1.18% for the week. The NYSE REIT advance/decline line also broke above its declining tops line and now stands 144 net advancing issues from its all time highs. Adding to this that the NYSE Bond and NYSE Preferred advance/decline lines also made new all time highs as well, one would think that any post quad OPEX price adjustment should be easily absorbed, and we should continue to look for even higher equity prices in the not too distant future.

Both the Precious Metals and XAU advance/decline lines took a well deserved pause this week, and with new highs in the XAU index itself, we now have our first bearish divergence between breadth and price since the January lows. We also had continued pauses in both the Aussie and Bombay advance/decline lines as market participants there continue to digest the sharp cumulative gains from their respected February lows. Over in Europe, the CAC, DAX and FTSE advance/decline lines continued to play "follow the leader" of the US markets as they maintained their bottom above bottom pattern structures. Overall then it was a good week globally, just not as robust as we're seeing here in the states.

So with the BETS climbing for the fourth straight week to a reading of +20, this indicator continues to suggest good underlying strength, but not enough as yet to begin longer term bullish accumulations of equities. Looking at the cumulative charts themselves, and it looks as though we're at least 2-3 weeks from this same accumulation signal which would put us into our preferred early April buy point for the market at large. With many of the breadth measures now highly "overbought", a pause to refresh would certainly be welcomed. However, with our moving above the longer term declining tops line in the NYSE Composite breadth MCSUM that goes back to the May 2013 highs this past Thursday, a challenge of an even more important declining tops line that goes back to February of 2012 is likely to occur this coming week. That line intersects around natural resistance at the +1000 level on the current ratio adjusted chart. Above that is the key declining tops line that goes back to the bull market inaugural highs of September of 2009 which intersects at around +1100 level. Any break above that level would then confirm a re-initiation of the longer term uptrend, and new all time price highs would follow in many, if not all, of the major market averages here in the United States.

We'll see how it goes.

Have a great trading week!

US Equity Markets:

[breadthspx031816]


[breadthdjia031816]

[breadthspec031816]

[breadthpre031816]

US Interest Rates:

[breadthtnx031816]

[breadthig031816]

[breadthjunk031816] 

US Real Estate:

[breadthreit031816]

Precious Metals:

[breadthpm031816]

[breadthxau031816]

Australia:

[breadthaus031816]

England:

[breadthftse031816]

France:

[breadthcac031816]

Germany:

[breadthdax031816]

India:

[breadthbse031816]

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