INS: Further Consolidation Seems Likely in Days Ahead
Summary: further consolidation seems likely in days ahead.
Industrial stock sector Relative Strength Ratio rose further above rising 50-day and 200-day SMAs on 9/7/10 and remains bullish.
Materials stock sector Relative Strength Ratio rose further above 7-month high on 9/7/10.
The Small Cap Russell 2000 Index/Large Cap Relative Strength Ratio crossed below its 50 SMA and 200 SMA on 9/7/10, thereby turning neutral.
Gold nearest futures contract rose further above 8-week highs on 9/7/10, again confirming a significant uptrend.
S&P 500 Composite fell 12.67 points or 1.15% on Monday 9/7/10. Absolute price remains neutral, below the 200-day SMA, and with the 50-day SMA below the 200-day SMA. The market may need to demonstrate upside follow-through in order to turn around investor confidence, which has fallen to a low level. For more than 2 months, the stock market has been consolidating losses in a trading range between the SPX 1131.23 high of 6/21/2010 and the SPX 1010.91 low of 7/1/10--and further consolidation seems likely in days ahead.
