Burk's Technical Market Report
Mike BurkThe good news is:
February 19, 2006
- The DJIA hit a multiyear high last week and the DJT hit an all time high.
The chart below covers the period from late last September with dashed vertical lines on the 1st trading day of each month.
The NASDAQ new high indicator (OTC NH) is a 10% trend (19 day EMA) of NASDAQ new highs. The Russell 2000 (R2K) is shown in red and OTC NH is shown in green.
The indicator turned upward last week.
As of Friday the value of the indicator was 183 so more than 183 new highs will move the indicator upward while less than 183 will move the indicator downward.
Summation indices (SI) are running totals of oscillator values.
The chart below covers the period from last September through last Friday showing the R2K in red and SI's calculated from NASDAQ advancing - declining issues, new highs - new lows and upside - downside volume. All of the SI's turned upward last week.
The next chart covers the period from last April through last Friday. It shows the R2K in red and momentum of downside volume in blue.
The indicator usually moves in the same direction as prices, often with a little lead. This indicator is moving sharply upward.
Next week can be viewed from several seasonal perspectives.
- It is the week after options expiration.
- It is the week after the Presidents day Holiday.
- It will be the first 4 of the last 6 trading days of the month.
I am only going to look at the 3rd, because it will always be the same.
The tables below show the last 6 trading days in February during the 2nd year of the Presidential Cycle with summaries for the 2nd year of the Presidential Cycle and all years. NASDAQ composite (OTC) data runs from 1963 to the present and S&P 500 (SPX) data runs from 1928 to the present.
There is a positive bias to the period.
Most of the indicators turned upward last week and the remainder of the month has a positive seasonal bias.
I expect the major indices to be higher on Friday February 24 than they were on Friday February 17.
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