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We saw very weak action in all of the major US stock markets last week even though the market stabilized on Friday. The weekly and daily momentum both point lower and a violation of the July 20 lows will indicate a test of the key support at the July lows. The NYSE A/D line has also turned lower, but is acting much stronger than prices as it is still above its 34 EMA. It has a good long-term record and a false bullish signal would be rare, which makes the next few weeks important.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.
