The Bovespa is decidedly negative; and has been so since September 2012.
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The Dow Jones Transportation stocks are clearly faltering. The recent bounce-back rally notwithstanding. The Light Brown Line in the Central Pane (our M2F ALT indicator) is a momentum indicator showing the current rally has taken the Dow Jones Transportation stocks to an oversold condition (100); oversold is at zero. The Orange Lines in the Central Pane are the short- and the intermediate-trends; both are generating negative patterns.
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We finally get to an index that is positive. DRG, the Pharmaceutical Index, does have a pulse, and ‘has had a pulse‘ since it first began climbing in November 2012. You will notice that every selling point is accompanied by a lack of pulse. The lack of a pulse is not, in an of itself, a reason for alarm. Each stock has periodical pullbacks; this is normal and healthy; what is not ‘normal and healthy‘ is when a rally following a normal pullback does not generate a rising pulse. This is a time for concern.
Also, remember, the CGTS indicator (black line, central panel) has a very distinctive uptrend pattern when a rally is in process (shown above nicely); it then begins to breakdown very noticeably when a period of selling approaches.
I’m not showing individual stocks today: but BMY, Bristol Meyers, had a very noticeable collapse of CGTS over the last few days; and its pulse disappeared.
The CGTS indicator in the DRG chart appears to be at the beginning of a possible breakdown. This needs watching.
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