Technical Watch Cumulative Charts

Cumulative Data
Week Ending 4/30/04

At this juncture, it would appear that we are continuing to correct the excesses in which the market had generated over the last year - with the 1% trend
(200 day EMA) now the near term target as far as the A/D charts are concerned - and where at least a bounce should then be anticipated.

The new fly in the bull ointment comes with the Nasdaq A/D breadth line which has now broken below this same "trend" line with last weeks weakness. However, the breadth of volume continues to lag compared to the actual point change in equities which is being generated at this time, and with the McClellan Summation Index continuing to be in a intermediate constructive mode, it would appear that we are (or have been) involved with what should be the last shake out before we then make a new attempt to rally more productively.

At the same time, a definitive break of the 1% trend might then suggest something else is going on.

It should be an interesting week ahead, and I remain on the bullish side of neutral the market - short term - at this time.

The above charts are courtesy of StockCharts.com

Comments provided are for informational purposes only
and not intended for trading purposes.

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