April 21, 2014 $RUT, A-D Line, & Summation Index

   If the market falls, it will surely take the $RUT with it. But I am more optimistic than Radrian (analyst of $RUT on Tony Caldero OEW site) about the R2k because in an only moderately strong market on Monday the R2k closed on it's high of the day. It seems to me that it overcame tough resistance in the region of 1110-1130 where it's action was very choppy and is now moving steadily higher, as evidenced by closing on it's high of the day. We'll see if the choppiness resumes when it hits the resistance areas Radrian discussed above (1147-1166). If it can ascend in a steady manner through that potentially turbulent zone, that would be a huge plus and a sign that most bears on this index did their selling around the 1120 (+-10) area.
   The A-D line (closely related to the R2k) made a new high Monday; the McClellan Oscillator (McOs), a kind of filter or ema of  the A-D line, has risen above 0 and looks as though it wants to move higher. The Summation Index (SI), calculated by adding the daily McOs numbers, is now showing the beginning of an uptrend with larger gaps between it's points. It has not yet produced what Gene Morgan of the old "Charting the Market" TV show called "breakaway gaps", but it is only one strong breadth day, like the one we had on April 16, from doing so. Another hopeful sign is that the Sentiment Trader's long-term Index remained at the 50 area for the last two Fridays, meaning that bullish sentiment for the long term direction of the market was neutral. This indicator is most useful when viewed as a "contrary opinion" indicator. The less bullish it's reading, the further from the top the market is.