50-Leaders 3/3/2010

We're getting down to the nitty gritty here.

The high today of the XFL (50 Leaders Index) hit a new 20-Day high.

That sets up a "Turtle Soup Plus One" possibility mentioned earlier tonight.

But ........... we now have a negative divergence on the internals of this Index.

The previous high for the 50-Leaders was on 23/2/2010. The percent of the 50-Leaders at that time above the 10-Day Moving Average was 82%, but the percent of the 50-Leaders above the 10-Day Moving Average today was just 66%. A considerable discrepancy.

This concurs with the negative divergence mentioned earlier tonight regarding the A/D Thrust.

The internal strength of this movement is definitely beginning to weaken.

That doesn't mean the market must fall. But the warning signs are mounting.

Cheers

Red