It's time for a sentiment update as well but the continued sky high readings mean that it has lost it's usefulness as a timing tool but not it's meaning.
So...
Firstly a bit of commentary on the XAO chart. At the high there was a nice 1:2 divergence. You don't always get them but it's good to see them working when they do show up. Then at the low a couple of days ago there was some relative strength showing up in the XSO.
Most bull markets are followed by a multi-week secondary rally. It could be 7-12 trading days or it could be more than that. In any case if the recent top was THE top then a multi-week rally might be in progress. If that is the case then 12 trading days from the low runs to about the 23rd of June... just a couple of days after the winter solstice.
Small divergence on the NYMO
The Summation Index has a negative divergence also, if you really want to find it, however the uptrend in the indicator over the past month really needs to be read as bullish.
The cumulative NYAD tells only a bullish story...
The ema20 of the NYAD has a small negative divergence matching the NYMO chart, however the consistent readings above zero make the divergence signal very questionable.
The Bullish Percent crunches the numbers in a different way but tells the same story as the NYSI. Viz. there is divergence on the board but the lift over the past month is notable.
The ratio of the Russel 2000 to the SPX is the same story as above, although with a small short term negative divergence.
The Nasdaq also often leads and has the first signs of a significant divergence for the first time in a long time.
Sooo.....
The long awaited steep drop requires yet more waiting.
The lifting of the breadth indicators over the last month really does tend to indicate that it's not going down yet, even if we already have good reason to expect much lower prices by the end of the year.
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