OE3 greases the skids

A quick look at the Philly Financial Index which has broken above the trendline and looks to be headed back to the old all time highs (given time). All the other indexes should follow.

The Monthly(L) and Weekly $BKX Charts
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Weekly DJIA Charts

Here are the weekly charts for the DJIA components sorted by price. I've included percentage bands from the 50 week moving average.

Big chart-click to enlarge

Big chart-click to enlarge

MCO update

We are a little overbought here but headed higher.

The SPX and MCO
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MCO update 6/8/12 - A reversal in the making.

After a rather nasty string of declining days the MCO and SUM Index appear to have reversed indicating that a new rally may be underway. I don't discount the chance of another pullback over the next several days but unless the 10% Index breaks down below -500 again, it should be just viewed as a retest.



The SPX divergences with the MCO
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MCO Update 5/18/12

We have experienced a general breakdown in this indicator which now indicates the markets need some time to reestablish confidence before a n extended move higher can get underway. While I do not expect it to occur a waterfall decline is still possible. Caution is warrented.

Click to Enlarge A long term view of the market with the MCO and SUM Indexes. We are very oversold on the MCO and should expect a bounce by Tuesday at the latest. The breakdown is severe enough that I believe we need another two weeks to establish a base again before looking for a reliable reversal.