Breadth improves | stockbee

6/11/2012

Breadth improves

Markets has undergone a brief correction in last few months. At one stage few weeks ago the selling accelerated.

However buyers have stepped in and in last few days the breadth has improved. A follow through buying in next week will confirm the trend reversal.


$BPNYA is showing possible turn on 5 MA. Rising $BPNYA reading would be good for rally.


On the Stockbee Market Monitor the 5 day breadth ratio has gone above 2 indicating a breadth thrust in last 5 days. But our primary indicator is still bearish and the Stockbee 401K Lemonade Strategy is still in cash.

Momentum stocks are not yet showing constructive buy patterns. The only momentum stocks that has had a b/o and followed through with gusto is PCYC.

Some of the momentum stocks setting up for possible upside are AOL, VRTX, and HTH. 

Overall the breadth picture is improving but market needs more buying for confirmation. 


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