Leading Indicators

Now we are getting the move the 3C charts have been moving toward all day, lets see if it has the kind of legs we need. A strong move and a strong signal of a reversal would be ideal. Otherwise we're still in waiting mode.

Yesterday Leading Indicators were really accurate, they were giving very clear signals as well. There are two things with leading indicators that I'm looking at, short term which includes intraday trade up to a reversal and longer term which is mainly focussed on a reversal.

Today's signals are not as clear, but the positive divergences in the averages suggesting we get some upside today, particularly if we could get a little lateral action which we did, are getting intraday support from High Yield Corporate, Junk and High Yield Credit, all suggesting an intraday move higher.

Yields are not as supportive right now. The Euro is supportive and moving with the market as it normally does. Commodities have seen some intraday volatility, I'm not sure what it's from, but even though they are less supportive now, I could see them shaping up.

The more bothersome issue is the longer term divergences in Leading Indicators, there are only a couple, mostly in currency, but there aren't the strong divergences that have marked major turning points over the last year, but I suppose this would not be a major turning point, from a 4-5 day move up to a longer move down, I suppose a major turning point would be a reversal of the longer move down to a move up.