Metrics Point to Stock Pullback

March 17, 2016

The recent rapid advances in both stocks and oil have pushed the most reliable market metrics back into bearish territory. With corporate bonds set to rally, a bull trap appears to be brewing, a condition where some large institutions are overbought, distribute false information via media channels in order to dump shares, and individual investors and traders take the hit.

Stock prices have been powered by recovery in oil prices, but the pace of the advance is not sustainable. Further bearish pressure could exist if institutions begin shorting oil again, as a hedge against losing stock positions....potentially damaging our economy in the process.

50 Day Advances - Declines.
Advances - Declines

Advance/Decline Line.
Advance/Decline Line

30 Day Advance Decline Volume Percent.
Advance Decline Volume Percent

McClellan Summation.
McClellan Summation

Record High.
Record High

Stocks above their 25 Day Moving Averages.
Stocks Above 25 MA

Should stocks rally higher, the potential for a market crash increases.

Disclaimer: This information is provided as a service only and does not constitute a recommendation to either buy or sell any security or commodity.