05 Jan State of the Market – 5 January 2015

Long term remains slightly overbought.  It definitely remains off of recent highs which shows some underlying long term weak trends established in some stocks.

Medium term is slightly above neutral and has begun declining.

Short term is getting slightly oversold.

The Adjusted Monetary Base has fallen significantly the past few months.  The image above doesn’t show it for some reason, but there has been a substantial bounce upwards in the latest data set.  I’m not sure what the lag is between this and stock prices.

Well there it is.  Looks like flat sections almost immediately ended up in corrections in 2010 and 2011.