Tuesday's update continues with a stopped mode and no new Alerts. Considering that T2 is a momentum driven model it follows that trending markets provide the best opportunity for capital appreciation...a situation we have not seen for several months, although there has been a downtrend tendency in the background. We continue to experience anemic volume in the majors and momentum changes on a day to day basis, reflecting a high level of uncertainty in the markets. The fact that the VIX continues to stabilize at the 16 level does reveal an underlying bullishness but as we inch closer to the January fiscal cliff deadline that may increase.
The component charts are shown below to help give some clarity to the issues at hand.
Note that Poly 5 has been updated to P6 ..the 6th degree version...which accelerates the momentum change indicator line by about 7%.
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