Old Indicator Turns Negative
The tried and true Granville OBV indicator turned negative for the Dow Industrial on the close yesterday, the first down signal since April 28th 2014. Granted that it was only negative for a little over twenty days on that prior signal. If the market closes around current levels (1958) or lower the S&P 500 will join with a negative signal today also.
Our Level V S&P Computer Strategy turned negative at 1956 today. Level II, III, and IV remain bullish and long.
These technical comments are separate from our negative Macro-Fundamental view that over the past three years has focused on the disconnect between consumption and production and the fact that structural changes will be needed if the macro deflation scenario is to be halted.