The following ChartWorks that was published for our subscribers May 18, 2011.
The two Muni ETFs we monitor continue to push higher. The MUB is no longer showing signs of a bearish divergence in the RSI(14), but has moved into the next phase of importance by generating upside Exhaustion Alerts in the past few days. The last times we saw this were into the 2009 and 2010 tops. We will view the first close back under the upper 100-day Bollinger Band (currently 102.75) as a sell signal.
The NPI has been weaker and is only just reaching its upper 100-day Bollinger Band. This fits the observations presented in our analysis of typical action following CBS 60 Minutes business related reports ("Vive Les Nukes", "Black Gold" and "House of Cards").
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Technical observations of RossClark@shaw.ca