This will just be a short post to alert my friends and followers to the fact that the market is now in a range where the HO is beginning to sit up and take notice. Yesterday, despite the markets around the world taking a pretty hefty dump, there were still over 400 new 52 week highs attained on the NYSE, so the HO wasn't even interested yesterday.
Today it's a different story. At the present moment, with an hour to go in the trading day, there have been 33 new highs and 36 new lows recorded. The minimum for each is 85, so at present there is little likelihood the HO will issue a signal today either.
One important factor is this... the most recent HO event occurred on April 15th. In order for a second and confirming signal to be accepted, it must happen within 36 days of the first. Today is 38 days since the last signal so technically we are starting all over again. The next signal will be recorded as another "initial" signal. And if some of the better known market technicians such as Walter Murphy are correct, the market is currently in a 4th wave correction off the April low, which of course implies higher prices to come. If that's the way things turn out, then the HO, which is working perfectly well, is more than likely in sync with those opinions.
But stay tuned... we're on the case and will report the next HO event when it occurs.
