More Divergence

12/04/2008 9:55 am EST

Focus: STRATEGIES

Thomas Aspray

, Professional Trader & Analyst

chart

The stock market's ability to rebound Wednesday was encouraging, as the McClellan Summation Index and NYSE new lows both show positive divergence. There were fewer new lows on 11/20 than on 10/10. The Summation Index is also back above its 21 WMA. We need more strength to confirm these signals.

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