May Quick-term and Short-term Indicant Updates

May 30, 2008 Indicant Daily Stock Market Report

Volume 05, Issue 21 ISSN 1526 6516 QT/ST

© The Indicant Stock Market Report

Today's Report

Quick/Short-term Indicant Stock Market Report - Summary

Quick-term Red Bulls: Sixteen of thirty; offering bullish support; no longer solid with significant population losses in the past two weeks.

Quick-term Yellow Bears/Threats: Four of thirty. Non-bearish support, but dwindling.

Quick-term Non-Bearishness: QTI differential is bullish 5.9%. Weakening non-bearish support.

Short-term Non-Bearishness: Breakout/breakdown differential is bullish by 6.7%. Solid, but weakening, bullish support.

Force Vectors: Somewhat of a bearish cycle is underway, but without robustness at this point.

Vector Pressure: Twenty-six in bullish domains. They are holding steady but two were lost in the past few days. This bull leg will not expire as long as Force Vectors remain above Vector Pressure.

STI Tangential Support: Three major indices lost their support lines last week. The other major indices still retain theirs. It is generally bearish when large caps lead bearish attributes, but important to not overreact.

Immediate Tactics: Buy signals for non-contrarian ETF’s will be limited with the bearish threat now underway. There were a few sell signals this week, mostly within the blue chip category.

Current Quick-term Bias: Bullish bias on April 29, 2008 no longer remains solid. This bull is panting now, but not yet dead.

Overall Market Status: Red bull population decline is discerning, but positive Vector Pressure remains, although its recent dominance is being challenged.

Profit Potential from Naked Options: Expect increased volatility with tangential support losses.

Volume: Lethargic, but consistent, with seasonal behavior.

Quick-term/Short-term Indicant Stock Market Report Details

To view the STI-Tangential Protection for ten major indices, click here. The Dow30 breached tangential protection against bearish aggression last Wednesday, 2008-05-21. On Friday, May 23, 2008, the Dow65-Composites, and the S&P100 also breached tangential protection with aggressive bearish behavior. The remaining major indices remain configured with that protection, but barely, with the exception of the mid-caps. That lone exception is acting as a barrier to bearish onslaught.

Vector Pressure remains in bullish domains with most of the major indices, providing some protection against bearish ambition. However, the blue chip’s Vector Pressure has crossed into bearish domains, forming bearish alliances.

You should take a look at the S&P400, which was the most bullish index on this cycle. It still has some room before breaching tangential protection. The magnitude of each indices bearish cycle are not the same. However, their directional bullish or bearish intensity are in harmony with the smaller caps falling faster and deeper than the blue chips during bearish cycles and conversely during bull cycles.

In this case, the mid-caps was the leader of the current bullish cycle, which appears nearing expiration. The small caps lagged in this Short-term Indicant bull cycle. The blue chips are taking it on the nose first, which indicates an increased probability of a major bearish cycle in the not too distant future. Keep in mind, though, that volatile expressions should not be surprising, as they occur more often at the beginning and ending of each bullish and bearish cycle.

As stated the past several days, the bull is tiring, but a Short-term Bull nonetheless. VIX bounced north off breakdown, suggesting no major cyclical shifts. This favors a resumption of a bearish stock market in the not too distant future.

The Short-term Indicant signaled bear on May 20, 2008 for the Dow Jones Industrial Average and on May 21, 2008, for the NASDAQ. The Short-term Indicant is influenced, in part, by historical seasonality, which has become too popular to be effective. It will eventually be replaced by a more esoteric tangential model. The Dow is down 1.5% and the NASDAQ is up 3.0% since their respective bear signals. Neither the bear or bull have synergistic commitment to directional intensity. There is a significant battle underway between the two.

Please read on. Click here to see the Short-term Indicant’s history.

Both Indicant Volume Indicator’s remain lethargic. There is little volume support favoring bull or bear. The NASDAQ volume was a little above average on today’s mild bullishness due to Dell’s increased earnings announcement. The bull reacted humbly, which is a common attribute to a tiring Short-term configuration.

Keep in mind lethargic volume cycles are seasonal to daylight savings time, allowing the market to moved wildly in either direction without substantive cause.

SQI Report Card (Consolidated Short/Quick), Status, and Charts

There were no buy signals and no sell signals. Although there were no buy signals, the SQI is signaling hold for 24-ETF’s. They are up by an average of 63.6% (annualized at 41.6%) since their respective buy signals an average of 78.6-weeks ago. Although there were no sell signals, the SQI is avoiding seven-ETF’s at this time. They are down by an average of 6.3% since their sell signals an average of 10.4-weeks ago.

The SQI model is the one that most of you will prefer for your trading decisions. It generates fewer signals than the other two models and represents consistencies in the Quick-term and Short-term outlooks for the specific ETF’s. It also beats buy and hold on a regular basis, although there is only nine years of proof. The quality of that proof is high since this period includes a powerful bull and bear. The model sours a little during meandering markets with an excessive number of signals from time to time. Research toward perfecting continues.

Short-term Indicant Report Card, Status, and Charts

There were no buy signals and no sell signals. Although there were no buy signals, the Short-term Indicant is signaling hold for 22-ETF’s. They are up an average of 95.6% (annualized 50.2%) since the STI signaled, buy, an average of 97.9-weeks ago. Although there were no sell signals, there are nine ETF’s with avoid signals. They are down by an average of 3.8% since their sell signals an average of 8.3-weeks ago.

The Short-term Indicant is more active in buying/selling than the Consolidated model. The Quick-term Indicant, which follows, is even more active.

Quick-term Report Card, Status, and Charts

There were no buy signals and one sell signal. Although there were no buy signals, the Quick-term Indicant is signaling hold for 24-ETF’s. They are up by an average of 17.3% (annualized at 40.4%) since the QTI signaled buy an average of 22.0-weeks ago. In addition to the sell signal, the Quick-term Indicant is avoiding six-ETF’s. They are down by an average of 5.8% since their sell signals an average of 7.7-weeks ago.

Current Strategy - As of May 21, 2008, the Dow30’s tangential support expired. Two other major indices expired on Friday, May 23, 2008. However, the other major indices remain in tact, but they will eventually expire. When they expire, the Quick-term Indicant will signal sell for most of the non-contrarian ETF’s that were bought since last April and early May, unless their individual attributes remain strongly bullish.

Conflicts Between the Short-term and Quick-term Indicants

There are five conflicts, whereby the Short-term Indicant and the Quick-term Indicant are in disagreement between hold and avoid status. The combined Short/Quick Indicant models identify 68-hold signals and only 21-avoid signals, providing a bullish bias. The bullish bias shift on August 15, 2006 expired on January 4, 2008, but a potential bullish bias shift was born on March 11, 2008, which has now expired. After some jittery behavior, a new bullish bias shift was born in mid-April 2008, but the measurement of performance will commence on April 29, 2008 when several ETF buy signals were generated.

The comment about being 97% confident the market will be lower than early April’s values at some future point; most likely in 2009, will be reinserted in this daily stock market report as soon as the current bullish bias expires. In the meantime, it is time to enjoy this bull leg until expiration, which is nearing.

Quick-term Indicant Bull/Bear Health Report

Four of the 30-ETF’s are below their respective bearish yellow curves. That is non-bearish, but the increase in yellow bears the past few days is discerning. The average relative position of all thirty ETF’s is above bearish yellow by 6.0%. This is the forty-second consecutive trading day with non-bearish support.

Sixteen ETF’s are above their bullish red curves. All thirty ETF average positions are below bullish red by a mere 0.1%, which is non-bullish, but barely.

Fifteen of the sixteen Red Bulls are non-contrarian, which is remains bullish. It only takes one non-contrarian red bull to stifle dynamic bearish aggression.

The QTI differential is bullish by 5.9%. This is the thirtieth consecutive trading day of bullish support.

Click the heading link in this section to view the charts. As earlier stated, there was no violent bullish response to Vector Pressure crossing into bullish domains from yellow bear status. That supported Quick-term bullishness.

Short-term Indicant Bull/Bear Health Report for ETF’s

The above heading is linked to the Short-term Indicant table. This paragraph is repeated daily as a reminder of accurately interpreting the charts. By clicking the charts on the table you can review potential contact with the breakdown lines (bearish) and potential contact with breakout lines (bullish). It is extremely bearish when several ETF’s are contacting their respective breakdown lines. The breakdown lines are the yellow lines (bearish). The breakout lines are the red ones (bullish). Close proximity to breakout implies an increased probability of an actual breakout occurring. It is certainly bullish and you will want to be in a hold position for those few days a year when the breakout occurs. Conversely, significant contact with yellow (breakdown) suggests “avoid” positions are best.

None of the thirty ETF’s are contacting their breakout lines, which is no longer providing bullish support. After seven consecutive days of breakout contact two weeks ago, the bull became exhausted from such minimal effort.

The average distance from breakout contact is 11.3%. Double digit variances from breakout contact for 101-consecutive trading-days has been non-bullish. After nearing a single digit expression earlier this past week, which is solidly bullish, the bear was obviously offended by this near excursion with near-complete bullish dominance.

None of the thirty ETF’s are contacting their breakdown lines, which is non-bearish.

The average distance between the price and breakdown is 18.0%. This configuration is providing non-bearish support, which has been the case since March 2003.

The breakout/breakdown differential is bullish by 6.7%, which is supportive of the bull, but this bullish support has been relaxing, but held steady this past week.

ETF Force Vector Configurations

You can scan the Quick-term Indicant for Exchange Traded Funds table and click on the charts to observe Force Vector configurations. Scroll down each of the charts, where a quick link has been added to take you to the next series of Quick-term ETF charts. Use you back arrow on your browser to return to the previous page.

Twelve Force Vectors are in bullish domains, which is non-bullish, but lacking bearish robustness. Recent configurations have been abnormal; most likely due to the threat of voodoo bookkeeping.

To understand potential financial opportunities, click here to learn to identify Robust Force Vectors. They are visible on the Quick-term Indicant charts.

ETF Force Vectors/Vector Pressure Crossings/Option Signals

Remember, the links contained herein are more visible when reading this on the website.

Click this sentence for Vector Pressure Option Signals. There were three call option buy signals after Friday’s close. There have been 11-call option buy signals since last Thursday.

Today’s flat market was not friendly for transacting discounted buy offers for yesterday’s signals. Options need volatility, which should be increasing in the next few days.

Twenty-six of the thirty ETF Vector Pressures are in bullish domains, which for forty consecutive trading days is offering bullish support. Be cautious, as this is a decrease by two from late last week and many are weakening in their bullish strength.

Make certain you sell naked options when the Force Vectors shift direction or within two days of the purchase, whichever occurs first. If you are unfamiliar with this, take the options tour.

Remember options trading is risky. Never offer “market prices.” Always bid low in hopes of an intraday contrarian movement to the underlying assumption of directional behavior. Always place day-orders, only. That keeps the floor folks out of your pocketbook. Do not despair if your order does not take. There are plenty of opportunities throughout the course of the year. Remember, stalking is the key to success here. Although not necessary for stock market success, those of you who have a gambling instinct will enjoy this. For those of you with a longer-term perspective, it does not hurt to see what the short-term folks are thinking. The Indicant indicates both perspectives.

Quick-term and Short-term Indicant Summary

The bullish bias shift that began on August 15, 2006 expired on January 4, 2008. However, a new bullish bias was born on March 11, 2008. It is not a thoroughbred, though. It is tainted with Enron-like misguidance from Bear Stearns. The March 11 bullish bias shift expired on April 11, 2008. It was expected to be just another short bullish spurt. The Quick-term Indicant is incapable of ignoring red bulls even though the trend is south. Consequently, a new bullish bias shift was started on April 29, 2008. It is now being threatened by expiring tangential support.

Blue chips and large caps have lost tangential protection.

Continue avoid writing covered options due to expected volatility as the bull and bear are nearing battle stages. Although red bull population has waned the past few days, they usually do not collapse all at once. It is a battle.

ProFunds Ultra Short mutual fund moves inversely to the QQQQ by exponential amounts. The Mid-term Indicant is avoiding this fund for the time being. The next growth opportunity will most likely be in 2009.

The Quick-term and Short-term Indicant tracks ETF#31, QID, which is the ETF cousin to ProFunds Ultra Short. This ETF is relatively new and has not yet developed enough data to formally track its outlook. It is excluded from overall ETF statistics because it is purely contrarian. It is designed to move bullishly during bear markets and bearishly during bull markets. This exclusion is required for convergent/divergent monitoring.

The Indicant signaled sell for QID on April 29, 2008. It is down by 10.2% since that sell signal. Force Vectors are moving south. Vector Pressure remains within bearish domains and with yellow bear configurations. It will take a lot of Force Vector energy to shift this back into a bullish configuration, but the attempt to do so could invigorate the bear (bull for this ETF). So far, though, this is simply a solid yellow bear with increasing interest to shift out of bearish influences. The interest will not be linear.

Other Contrarian Funds

ETF#03-Natural Resources - is up 51.3% (annualized at 31.7%) since the Quick-term Indicant signaled buy on Oct 25, 2006. Although it cooled off from its sizzling red hot status, it remains a solid red bull.

ETF#11-Gold and Precious Metals is up 100.9% since the Quick-term Indicant signaled buy on August 3, 2005. It is annualizing at 35.2%. Interestingly, it is in neutral domains and Force Vectors are moving bearishly.

ETF#14-Long Government is down 1.7% since the May 5, 2008 sell signal. Its Force Vector and Vector Pressure remain inside bearish domains, with unconventional, non-descript Force Vectors. The configuration is weak, but it could be a good buy for the more conservative investor in the event the market turns bearish. It fell to yellow bear last Thursday.

To familiarize yourself with viewing the market from an ETF perspective, click the following update links.

Quick-term ETF Options

Quick-term Indicant for ETF’s

Short-term Indicant for ETF’s

Consolidated Quick-term/Short-term Indicant for ETF’s

Click here to the report card, which is updated weekly, to link to related tours.

Links to the Short-term Indicant and Indicant Volume Indicator are below:

Short-term Indicant for DJIA and NASDAQ

Short-term Indicant Tables for the Dow Jones Industrial Average Index

Short-term Indicant Table for the NASDAQ Composite Index

Indicant Volume Indicator

Short-term Indicant for Tangential Analysis

Happy Investing,

Indicant.Net

www.indicant.Net

05/30/08

May 29, 2008 Indicant Daily Stock Market Report

Volume 05, Issue 20 ISSN 1526 6516 QT/ST

© The Indicant Stock Market Report

Today's Report

Quick/Short-term Indicant Stock Market Report - Summary

Quick-term Red Bulls: Fifteen of thirty; offering bullish support; no longer solid with significant population losses late last week.

Quick-term Yellow Bears/Threats: Five of thirty. Non-bearish support, but dwindling.

Quick-term Non-Bearishness: QTI differential is bullish 5.4%. Weakening non-bearish support.

Short-term Non-Bearishness: Breakout/breakdown differential is bullish by 6.1%. Solid, but weakening, bullish support.

Force Vectors: Somewhat of a bearish cycle is underway, but without robustness at this point.

Vector Pressure: Twenty-six in bullish domains. They are holding steady but one was lost last Thursday and another one today. This bull leg will not expire as long as Force Vectors remain above Vector Pressure.

Immediate Tactics: Buy signals for non-contrarian ETF’s will be limited with the bearish threat now underway. There were a few STI sell signals this week, mostly within the blue chip category, but not supported by QTI.

Current Quick-term Bias: Bullish bias on April 29, 2008 no longer remains solid. This bull is panting now, but not yet dead.

Overall Market Status: Red bull population decline is discerning, but positive Vector Pressure remains, although its recent dominance is being challenged.

Profit Potential from Naked Options: Expect increased volatility with tangential support losses.

Volume: Lethargic, but consistent, with seasonal behavior.

Quick-term/Short-term Indicant Stock Market Report Details

Vector Pressure remains in bullish domains. This offers resistance to absolute bearish dominance, but weakening. Force Vectors are turning north, which offers bullish support on a Quick-term basis. However, they are, for the most part, contained inside bearish domains.

You should take a look at the S&P400, which was the most bullish index on this cycle. It still has some room before breaching. The magnitude of each indices bearish cycle are not the same. However, their directional bullish or bearish intensity are in harmony with the smaller caps falling faster and deeper than the blue chips during bearish cycles and conversely during bull cycles.

The Short-term Indicant signaled bear on May 20, 2008 for the Dow Jones Industrial Average and on May 21, 2008, for the NASDAQ. The Short-term Indicant is influenced, in part, by historical seasonality, which has become too popular to be effective. It will eventually be replaced by a more esoteric tangential model. The Dow is down 1.4% and the NASDAQ is up 2.5% since their respective bear signals.

Please read on. Click here to see the Short-term Indicant’s history.

Both Indicant Volume Indicator’s remain lethargic. There is little volume support favoring bull or bear.

Keep in mind lethargic volume cycles are seasonal to daylight savings time, allowing the market to moved wildly in either direction without substantive cause.

SQI Report Card (Consolidated Short/Quick), Status, and Charts

There were no buy signals and one sell signal. Although there were no buy signals, the SQI is signaling hold for 25-ETF’s. They are up by an average of 62.6% (annualized at 42.7%) since their respective buy signals an average of 75.5-weeks ago. In addition to the sell signal, the SQI is avoiding five-ETF’s at this time. They are down by an average of 6.9% since their sell signals an average of 14.3-weeks ago.

Short-term Indicant Report Card, Status, and Charts

There were no buy signals and no sell signals. Although there were no buy signals, the Short-term Indicant is signaling hold for 22-ETF’s. They are up an average of 94.1% (annualized 49.5%) since the STI signaled, buy, an average of 97.8-weeks ago. Although there were no sell signals, there are nine ETF’s with avoid signals. They are down by an average of 3.5% since their sell signals an average of 8.1-weeks ago.

The Short-term Indicant is more active in buying/selling than the Consolidated model. The Quick-term Indicant, which follows, is even more active.

Quick-term Report Card, Status, and Charts

There were no buy signals and one sell signal. Although there were no buy signals, the Quick-term Indicant is signaling hold for 25-ETF’s. They are up by an average of 16.1% (annualized at 39.0%) since the QTI signaled buy an average of 21.2-weeks ago. In addition to the sell signal, the Quick-term Indicant is avoiding five-ETF’s. They are down by an average of 6.5% since their sell signals an average of 9.1-weeks ago.

Current Strategy - The current bull leg is maturing. The Large Cap bull leg has expired. The smaller caps and mid-caps continue with a Short-term Bull configuration, but weakening. Upon expiration of this Short-term bull cycle, the Short-term Indicant will most likely signal sell for most ETF’s when their red bull status is lost and Vector Pressure is negative. That is not the normal process, but since the QTI was late with the buy signals, it has to be earlier with the sell signals to make up for that error. Although this could encourage more fluttering, bearish risk are high enough to justify this approach. The original intent from the March 11, 2008 buy signals was to enjoy an approximate 8.0% gain with earlier than normal series of buy signals. In hindsight that original designed intention was perfect. Unfortunately, it was abandoned in early April with the Bear Stearns voodoo bookkeeping discoveries.

Recent buy and sell signals have been stimulated to re-synchronize the normal model, which originally identified the current bullish cycle as a bullish spurt, but with wavering assessments of its sustainability. The current Quick-term Bullish cycle originated in mid-March or about six weeks ahead of bearish seasonality. Seasonal indices are one of several dimensions with vacillating weighting factors. For example, in the great bull leg of 2003, bearish seasonality was ignored, while they accurately identified the meandering bear markets of 2004, 2005, and early 2006. Based on normal seasonality, the current bull leg was to have expired in late April or early May leaving room for a six-week bullish spurt.

Fundamentals support a resumption of a bearish cycle before the heart and soul of bullish seasonality later this year. Voodoo bookkeeping by Wall Street firms continue to threaten the viability of studied fundamentals. This will occur when most non-contrarian Red Bulls expire ahead of the next bear cycle. ETF#21 is non-contrarian, but its bullish strength may forbid it and a few others from receiving a sell signal. This is especially significant when the ETF’s relate to commodities. Tangential support will have to expire before this modified strategy is implemented.

As of May 21, 2008, the Dow30’s tangential support expired. Two other major indices expired on Friday, May 23, 2008. However, the other major indices remain in tact, but they will eventually expire. When they expire, coupled with a significant decrease in the number of non-contrarian non-Red-Bull ETF’s, that will substantiate the next bearish cycle.

Conflicts Between the Short-term and Quick-term Indicants

There are six conflicts, whereby the Short-term Indicant and the Quick-term Indicant are in disagreement between hold and avoid status. The combined Short/Quick Indicant models identify 69-hold signals and only 20-avoid signals, providing a bullish bias. The bullish bias shift on August 15, 2006 expired on January 4, 2008, but a potential bullish bias shift was born on March 11, 2008, which has now expired. After some jittery behavior, a new bullish bias shift was born in mid-April 2008, but the measurement of performance will commence on April 29, 2008 when several ETF buy signals were generated.

Quick-term Indicant Bull/Bear Health Report

Three of the 30-ETF’s are below their respective bearish yellow curves. That is non-bearish, but the increase in yellow bears the past few days is discerning. The average relative position of all thirty ETF’s is above bearish yellow by 5.7%. This is the forty-first consecutive trading day with non-bearish support.

Fifteen ETF’s are above their bullish red curves. All thirty ETF average positions are below bullish red by 0.3%, which is non-bullish.

Fourteen of the fifteen Red Bulls are non-contrarian, which is remains bullish. It only takes one non-contrarian red bull to stifle dynamic bearish aggression.

The QTI differential is bullish by 5.4%. This is the twenty-ninth consecutive trading day of bullish support.

Short-term Indicant Bull/Bear Health Report for ETF’s

None of the thirty ETF’s are contacting their breakout lines, which is no longer providing bullish support. After seven consecutive days of breakout contact two weeks ago, bearish aggression last Thursday and Friday took its toll on this former bullish attribute.

The average distance from breakout contact is 11.6%. Double digit variances from breakout contact for 100-consecutive trading-days has been non-bullish. After nearing a single digit expression earlier this past week, which is solidly bullish, the bear was obviously offended by this near excursion with near-complete bullish dominance.

None of the thirty ETF’s are contacting their breakdown lines, which is non-bearish.

The average distance between the price and breakdown is 17.7%. This configuration is providing non-bearish support, which has been the case since March 2003.

The breakout/breakdown differential is bullish by 6.1%, which is supportive of the bull, but this bullish support has been dwindling.

ETF Force Vector Configurations

Nine Force Vectors are in bullish domains, which is non-bullish, but lacking bearish robustness. Recent configurations have been abnormal; most likely due to the threat of voodoo bookkeeping.

To understand potential financial opportunities, click here to learn to identify Robust Force Vectors. They are visible on the Quick-term Indicant charts.

ETF Force Vectors/Vector Pressure Crossings/Option Signals

Remember, the links contained herein are more visible when reading this on the website.

Click this sentence for Vector Pressure Option Signals. There were eight call option buy signals and one put option buy signal after Thursday’s close

Today’s bullish behavior was not friendly to Tuesday’s call option buy signal. Significant bearish behavior is required tomorrow for this to play out. Configurations suggests an above average probability of success here.

This is a relatively high number of call options for a tiring bull leg. Be conservative. The signals were conflicting with the put option signal for ETF#07-DIA, which is the Dow30 fund.

Twenty-six of the thirty ETF Vector Pressures are in bullish domains, which for thirty-nine consecutive trading days is offering bullish support. Be cautious, as this is a decrease by two from late last week and many are weakening in their bullish strength.

Make certain you sell naked options when the Force Vectors shift direction or within two days of the purchase, whichever occurs first. If you are unfamiliar with this, take the options tour.

Quick-term and Short-term Indicant Summary

Blue chips and large caps have lost tangential protection.

The Indicant signaled sell for QID on April 29, 2008. It is down by 9.3% since that sell signal. The bullish Force Vector is complete, offering limited stimulants for bullish behavior, but configuring to increase Vector Pressure. Vector Pressure remains within bearish domains and with yellow bear configurations. It will take a lot of Force Vector energy to shift this back into a bullish configuration, but the attempt to do so could invigorate the bear (bull for this ETF). So far, though, this is simply a solid yellow bear with increasing interest to shift out of bearish influences. The interest will not be linear.

Other Contrarian Funds

ETF#03-Natural Resources - is up 50.3% (annualized at 31.1%) since the Quick-term Indicant signaled buy on Oct 25, 2006. It is a solid red bull although a little too hot right now. As stated last Friday, its Force Vector shifted south, encouraging a cooling off period.

ETF#11-Gold and Precious Metals is up 99.2% since the Quick-term Indicant signaled buy on August 3, 2005. It is annualizing at 34.7%. This also cooled today, but nowhere near being threatened by the bear.

ETF#14-Long Government is down 2.4% since the May 5, 2008 sell signal. Its Force Vector and Vector Pressure remain inside bearish domains, with unconventional, non-descript Force Vectors. The configuration is weak, but it could be a good buy for the more conservative investor in the event the market turns bearish. It is now a yellow bear.

To familiarize yourself with viewing the market from an ETF perspective, click the following update links.

Quick-term ETF Options

Quick-term Indicant for ETF’s

Short-term Indicant for ETF’s

Consolidated Quick-term/Short-term Indicant for ETF’s

Click here to the report card, which is updated weekly, to link to related tours.

Links to the Short-term Indicant and Indicant Volume Indicator are below:

Short-term Indicant for DJIA and NASDAQ

Short-term Indicant Tables for the Dow Jones Industrial Average Index

Short-term Indicant Table for the NASDAQ Composite Index

Indicant Volume Indicator

Short-term Indicant for Tangential Analysis

Happy Investing,

Indicant.Net

www.indicant.Net

05/29/08

May 28, 2008 Indicant Daily Stock Market Report

Volume 05, Issue 19 ISSN 1526 6516 QT/ST

Today's Report

Quick/Short-term Indicant Stock Market Report - Summary

Quick-term Red Bulls: Twelve of thirty; offering bullish support; no longer solid with significant population losses late last week.

Quick-term Yellow Bears/Threats: Five of thirty. Non-bearish support, but dwindling.

Quick-term Non-Bearishness: QTI differential is bullish 4.7%. Weakening non-bearish support.

Short-term Non-Bearishness: Breakout/breakdown differential is bullish by 5.4%. Solid, but weakening, bullish support.

Force Vectors: Somewhat of a bearish cycle is underway, but without robustness at this point.

Vector Pressure: Twenty-seven in bullish domains. They are holding steady but one was lost last Thursday. This bull leg will not expire as long as Force Vectors remain above Vector Pressure.

Immediate Tactics: Buy signals for non-contrarian ETF’s will be limited with the bearish threat now underway. There were a few STI sell signals yesterday, but not supported by QTI.

Current Quick-term Bias: Bullish bias on April 29, 2008 no longer remains solid. This bull is panting now, but not yet dead.

Overall Market Status: Red bull population decline is discerning, but positive Vector Pressure remains, although its recent dominance is being challenged.

Profit Potential from Naked Options: Expect increased volatility with tangential support losses.

Volume: Lethargic, but consistent, with seasonal behavior.

Quick-term/Short-term Indicant Stock Market Report Details

To view the STI-Tangential Protection for ten major indices, click here. The Dow30 breached tangential protection against bearish aggression last Wednesday, 2008-05-21. Since then, the bear has been encouraged to express its ambition. On Friday, May 23, 2008, the Dow65-Composites, and the S&P100 also breeched tangential protection with aggressive bearish behavior. The remaining major indices remain configured with that protection, but barely.

Force Vectors are moving south, favoring bearish ambition. However, Vector Pressure remains in bullish domains. This offers resistance to absolute bearish dominance, but weakening.

In this case, the mid-caps was the leader of the current bullish cycle, which appears nearing expiration. The small caps lagged in this Short-term Indicant bull cycle. The blue chips are taking it on the nose first, which indicates an increased probability of a major bearish cycle in the not too distant future. Keep in mind, though, that volatile expressions should not be surprising, as the occur more often at the beginning and ending of each bullish and bearish cycle.

The Short-term Indicant signaled bear on May 20, 2008 for the Dow Jones Industrial Average and on May 21, 2008, for the NASDAQ. The Short-term Indicant is influenced, in part, by historical seasonality, which has become too popular to be effective. It will eventually be replaced by a more esoteric tangential model. The Dow is down 1.8% and the NASDAQ is up 1.6% since their respective bear signals.

Please read on. Click here to see the Short-term Indicant’s history.

Both Indicant Volume Indicator’s remain lethargic. There is little volume support favoring bull or bear. Today’s volume was normal, suggesting little excitement.

Keep in mind lethargic volume cycles are seasonal to daylight savings time, allowing the market to moved wildly in either direction without substantive cause.

SQI Report Card (Consolidated Short/Quick), Status, and Charts

There were no buy signals and no sell signals. Although there were no buy signals, the SQI is signaling hold for 26-ETF’s. They are up by an average of 61.2% (annualized at 43.4%) since their respective buy signals an average of 72.6-weeks ago. Although there were no sell signals, the SQI is avoiding five-ETF’s at this time. They are down by an average of 7.4% since their sell signals an average of 14.2-weeks ago.

Short-term Indicant Report Card, Status, and Charts

There were no buy signals and no sell signals. Although there were no buy signals, the Short-term Indicant is signaling hold for 22-ETF’s. They are up an average of 95.3% (annualized 50.2%) since the STI signaled, buy, an average of 97.6-weeks ago. Although there were no sell signals, there are nine ETF’s with avoid signals. They are down by an average of 4.1% since their sell signals an average of 8.0-weeks ago.

The Short-term Indicant is more active in buying/selling than the Consolidated model. The Quick-term Indicant, which follows, is even more active.

Quick-term Report Card, Status, and Charts

There were no buy signals and no sell signals. Although there were no buy signals, the Quick-term Indicant is signaling hold for 26-ETF’s. They are up by an average of 15.3% (annualized at 38.6%) since the QTI signaled buy an average of 20.4-weeks ago. Although there were no sell signals, the Quick-term Indicant is avoiding five-ETF’s. They are down by an average of 6.6% since their sell signals an average of 8.9-weeks ago.

Conflicts Between the Short-term and Quick-term Indicants

There are only six conflicts, whereby the Short-term Indicant and the Quick-term Indicant are in disagreement between hold and avoid status. The combined Short/Quick Indicant models identify 70-hold signals and only 20-avoid signals, providing a bullish bias. The bullish bias shift on August 15, 2006 expired on January 4,