The HI/LO Indicators, if shown, can be used to demonstrate why market change may soon appear whether the trend is rising or falling. Naturally daily, weekly and even monthly views reflect the possible time sequence these indicators may reflect. My experience in using these have been made an impact 2/3rds of the time. That’s about as successful as most such indicators can make.
After this powerful rally higher Wednesday we could include and highlight many charts. But for simplicity we only need to include the powerful sector leader, the weekly chart of Transports (IYT) which reflects the “panic buying” taking place.
One note of, dare I say “caution”, is at this rate the IYT and many other indexes will probably close the year at a completed HI reading.
Dave Fry is founder and publisher of ETF Digest and has been covering U.S. and global ETFs since 2001.
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