At DecisionPoint we monitor intermediate-term and long-term BUY/SELL indicators on twenty-six market, sector, and trade group indexes. The long-term BUY indicators are based mostly upon the well-known Golden Cross, which is when the 50-day shifting common crosses up by way of the 200-day shifting common. (We use exponential shifting averages — EMAs.) Intermediate-term BUY indicators are based mostly upon the 20-day shifting common crossing up by way of the 50-day shifting common, which we name a Silver Cross. On the McDonalds chart are examples of every. A caveat that comes with the indicators is that they’re data flags, not motion instructions. A brand new sign tells us to have a look at the chart and determine if any motion is acceptable. Within the case of those two crossovers, they have been wholesome wanting indicators with value exhibiting clear modifications of course inside every time-frame.
Subsequent we’ve the DecisionPoint Market Scoreboard, which we publish day by day within the DecisionPoint ALERT. It’s present as of the shut October 17, 2024, and it’s nearly as good as it could actually get. That is excellent news and dangerous information. The excellent news is that the inventory market is wanting very wholesome when it comes to uncooked value motion. The dangerous information is that the sign standing is nearly as good because it will get, and the pendulum will probably be swinging the opposite method, in all probability before later.
Together with the sign monitoring, we’ve created the Silver Cross Index (SCI) and Golden Cross Index (GCI) for every of the market/sector indexes above. The Silver Cross Index reveals the share of index elements which are on a Silver Cross BUY sign. The Golden Cross Index reveals the share of index elements which are on a Golden Cross BUY sign.
The chart under is for the S&P 500 Index. Word that each the GCI and SCI present 80 % of S&P 500 part shares are on BUY Indicators in each time frames. This isn’t as sturdy as in 2021, however it is extremely stable and partially backs up what we see on the DecisionPoint Market Scoreboard.
Conclusion: We test these charts every single day, and are at all times conscious of growing weak spot and potential for indicators to vary. In the previous couple of weeks I discovered the image to be unusually secure, and presently with no instantly impending sign modifications. This, in fact, may change in a heartbeat, however in the intervening time calm prevails. As I mentioned, when issues are nearly as good as they will get, we needs to be alert for situations to start out deteriorating, however to date, so good.
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Useful DecisionPoint Hyperlinks:
Pattern Fashions
Worth Momentum Oscillator (PMO)
On Stability Quantity
Swenlin Buying and selling Oscillators (STO-B and STO-V)
ITBM and ITVM
SCTR Rating
Bear Market Guidelines
Carl Swenlin is a veteran technical analyst who has been actively engaged in market evaluation since 1981. A pioneer within the creation of on-line technical assets, he was president and founding father of DecisionPoint.com, one of many premier market timing and technical evaluation web sites on the net. DecisionPoint makes a speciality of inventory market indicators and charting. Since DecisionPoint merged with StockCharts.com in 2013, Carl has served a consulting technical analyst and weblog contributor.
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