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 (MCD) chart beneath, you may see examples of every.
A caveat that comes with the indicators is that they’re info flags, not motion instructions. A brand new sign tells us to take a look at the chart and determine if any motion is acceptable. Within the case of those two crossovers, they had been healthy-looking indicators, with value displaying clear adjustments of course inside every timeframe.
Subsequent we’ve got the DecisionPoint Market Scoreboard, which we publish day by day within the DecisionPoint ALERT. It’s present as of the shut on October 17, 2024, and it’s pretty much as good as it could get. That is excellent news and unhealthy information. The excellent news is that the inventory market is trying very wholesome by way of uncooked value motion. The unhealthy information is that the sign standing is pretty much as good because it will get, and the pendulum will probably be swinging the opposite method, most likely before later.
Together with the sign monitoring, we’ve got created the Silver Cross Index (SCI) and Golden Cross Index (GCI) for every of the market/sector indexes above. The Silver Cross Index exhibits the proportion of index elements which can be on a Silver Cross BUY sign. The Golden Cross Index exhibits the proportion of index elements which can be on a Golden Cross BUY sign.
The chart beneath is for the S&P 500 Index. Observe that each the GCI and SCI present 80 % of S&P 500 element shares are on BUY Alerts in each time frames. This isn’t as sturdy as in 2021, however it is extremely strong and partially backs up what we see on the DecisionPoint Market Scoreboard.
Conclusion: We test these charts each day, and are all the time conscious of growing weak spot and potential for indicators to alter. In the previous few weeks, I discovered the image to be unusually steady, and presently with no instantly impending sign adjustments. This, in fact, may change in a heartbeat, however, for the second, calm prevails. As I mentioned, when issues are pretty much 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:
Value Momentum Oscillator (PMO)
Swenlin Buying and selling Oscillators (STO-B and STO-V)
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 internet. DecisionPoint focuses on 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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