The OBV has broken its downtrend (line c) and appears to be starting a new uptrend.
The relative performance broke its downtrend, line b, in late October as it started a new uptrend.
It will take another week or so before a new uptrend in the RS line can be confirmed.
The weekly technical studies (not shown) have moved above their MAs indicating that a new uptrend is underway.
By the second week of June, the Dow had started a new uptrend that carried higher until early 1937.
The new uptrend in the U.S. Dollar dramatically shifts the landscape of established relationships between the various asset classes.
On October 15, point 3, the Industrials closed above the September highs, thereby signaling that a new uptrend was underway.
Then, in April 1978, the Transports closed above the highs from late 1977, point 1, and began a new uptrend.
The question now is, was that simply a dead cat bounce or can we start a new uptrend of sorts?
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This was a positive sign, but it was then necessary for the averages to prove themselves by confirming a new uptrend.
At the end of October (line 1), it closed at a new three-month high, suggesting that a new uptrend had begun.
For the past six weeks, Cal Dive has been in a new uptrend, after pulling back more than 12% in October.
If earnings are pleasing and the economy shows signs of significant improvement, it is also possible that we could build a new uptrend.
This was also the day the market confirmed a new uptrend, so it was very important for the AAPL to to lead, which it did.
On the first oversold rally in the stock market, the materials and energy sectors may see more short covering, but once the market starts a sustainable new uptrend, groups like the restaurant stocks are likely to do the best.
The market internals have started to act stronger than prices, which is what is needed for a sustainable new intermediate uptrend.
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One of the most simplistic ways to use the OBV is to see if it makes a new high with each price high in an uptrend, or makes a new low with prices in a downtrend.
These charts from the New York Times show the strong uptrend in prices and the downtrend in the number of existing homes on the market.
With stocks breaking out to new two-year highs on Friday and just about every major index now clearly in an uptrend, there is talk of the stars aligning for a new leg up in the bull market that began on March 10, 2009.
The weekly OBV has confirmed the new highs, but is in a shallow uptrend.
The relative performance has confirmed the new price highs and shows a long-term uptrend, line h.
The OBV made a new high last week as it successfully tested the uptrend, line f.
By early fall a solid uptrend was underway and the number of new highs continued to expand.
Typically this occurs 4-7 days after a new rally begins and significantly increases the chances of a sustainable uptrend.
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The weekly OBV did make new highs with prices in mid-September but broke its uptrend, line d, in early October.
By the latter part of March, the uptrend had resumed and the number of stocks making new highs had also started to increase.
The relative performance made new highs Tuesday as it held well above its WMA and the uptrend, line e, on the current correction.
The weekly relative performance did make slight new highs with prices in September, but violated its WMA and the uptrend (line c) four weeks ago.
The weekly relative performance or RS analysis did make a new high with prices in September but then violated its WMA and the uptrend, line b.
The weekly OBV failed to confirm the new price highs, as indicated by line c, and it violated its uptrend (line d) this week.
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