Weekend Review 05/04/12

For this weekend's review I thought I'd post a cornucopia of charts primarily with GMMA as an indicator.  First a look at the Russell which continues to under perform shows that the head and shoulders topping pattern may still be in play.

Russell 05/04/12  

The same time frame using GMMA shows that the shorter term averages have been unable to align above the longer term averages and that the longer term averages have been squeezing and are in the process of rolling over.  In the application of GMMA this indicates that investors are not fully supporting the current price and that without their support the market moving higher is questionable.

Russell GMMA

The same weakness the Russell is exhibiting has not become as apparent upon some of the other indexes.  In part this is due to the internal construction of these indexes and what they track as APPL, PCLN, CMG, MA etc... have had significant and slightly distorted impact upon them, so if the weakness does carry over it will be  more evident should these stocks begin to falter.

Nasdaq 100

NASDAQ

SP

Wilshire 5000

The next series of charts relate to sector strength.

Sectors ETF Compared to SP

Sector EFT 2

Price Percent Change Month, Sector ETF

XLP

XLU

DVY

XLV

XLY

XLI

XLB

XLK

XLF

XLE

XLT

Using GMMA we can ascertain with more clarity what has been trending firmly and what has been oscillating and/or breaking down to gain greater insight into where money is flowing into and where money is flowing from.  The market looks like it is posturing defensively here and considering the number of macro events underway from sovereign debt issues to elections the unwinding of these near term implications likely be the greater influence upon the market until the market itself once again becomes the focal point.