Short Term Review

Our latest Short Term Review has been released to subscribers and is available on our website. In this issue, we discuss the divergences in the equity market, rising yields, the potential for a surprisingly large dollar rally, and continued pressures on commodities. If you are interested in subscribing and receiving this and future reports, please send an e-mail to customerservice@wminsights.com.

Here is a sample from the current report:

In recent comments we have made a fairly big deal about the trading range that has been in force since early October. However, there is a case to be made that the internal peak was actually made in September. If so, then the market has spent the last three months creating divergences that will ultimately come home to roost.

S&P 1500 with BPI

An example of this is the nearby chart, which shows the S&P 1500 with its Bullish Percentage Index (BPI). The BPI is a point and figure breadth/momentum indicator (for a full definition. please refer to the glossary in our website, www.wminsights.com). While the index’s uptrend from the March low remains intact, the BPI clearly peaked in September. In fact, the BPI is in a downtrend.