On the bright side, there are not many negative divergences between the current reading and the most recent peak. The 5 over 13 is the most noticeable. The rest are pegged at historically high values.
Medium term summation index still not quickly getting off the floor.
As you can see by my blue line, the short term reading is historically high. The summation index is continuing up but looks to be a little lower percentage-wise from its peak in comparison with the Dow.
Go ahead and buy if you think this leg will continue higher, but you should wait until the odds improve a bit. I will be sitting it out. The time to buy was when I pointed out the extreme oversold nature of the Summation index on June 3rd - almost the exact bottom. Hindsight does matter because we need to maximize our risk reduction.
"The average man, who does not know what to do with his life, wants another one which will last forever."
Anatole France
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