Well that was one hell of a head fake Friday morning. I said that I'd wait for the close to get the market's true feelings about the employment report. Apparently the market hated the report but volume makes me question that. I was surprised to see that volume decreased from Thursday to Friday. That makes me think that there was just a lack of buyers as opposed to a flood of sellers.
Over the last few days I've been noticing that T2108 was actually dropping as the indices were making new highs. That was very surprising to me given that it seems like everything is going up. Here's a chart of a similar indicator, the percentage of S&P 500 stocks which are above their 50-day moving averages. It's plotted against the S&P 500 (black line) so that you can see the bearish divergence:
Here's the S&P chart by itself:
Ron Sen just posted a chart of the "NYSE New Highs - New Lows" which shows a similar negative divergence vs. the NYSE index. Below is the same indicator for the Nasdaq plotted against the Nasdaq Composite Index.
And here's the Naz chart:
I'm going to be keeping a eye on all of these indicators.
