Breadth, Price Patterns and Sequential Scans
I was asked to take a look at the S&P 500 using my techniques and thought it would be a good time to explain how I look at the overall health of the market. Step 1: Look at my Market Monitor Breadth Chart The market monitor chart compares the number of highs vs. lows of every stock in an index. This is a powerful method and you can find an explanation in an post from 2008. As you can see, the momentum of the S&P 500 seems to be slowing and I would expect a pullback in the near future. Step 2: Look at price patterns The next thing I do is look for price patterns that can give...
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Just added the latest breadth charts to the Market Monitor page. http://marketturbulence.com/market-monitor/ Russell 2000 looks the best, while the NDX 100 is the...
read moreMarket Monitor Update
Time to look at the market monitor (MM) breadth indicator. All the indexes are showing signs of improving but they need to break into green territory before I’m convinced. With all the former leaders taking a dive (Neflix, Green Mountain, Amazon, ect.), I expect a downturn and push towards the lows. If we hit the lows but still have a higher MM breadth (say -40 on the SP 500), I’ll be much more bullish. Basically, I want to see something like we saw in ’09, where the price and MM breadth diverged dramatically. S
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Thanks for the kind words and encouragement Brian. While I don’t have much time at the moment, I’ll try to post some Market Monitor updates for the Nasdaq 100, S&P 500, and Russell 2000. Here they are as of September 1st, 2011. My opinion is that this bottom has more to prove. I have been playing with a new volatility based breadth indicator and I’ll probably post some of that too. ShareEmailPrintDigg
read moreChecking in with the Market Monitor
Time to look at the market breadth. Here are the Market Monitor indicators for both the Nasdaq 100 and S&P 500. We are now at levels that haven’t been seen in a long time, which is a good sign. It also shows that we are getting ready for a pullback so you don’t want to be chasing here. Have patience. [ad] ShareEmailPrintDigg
read moreMarket Breadth
It is time to check in with the market monitor breadth. Here is the S&P 500. Notice that we are not back down at the extreme depths of the market monitor breadth indicator, suggesting that there is some healing going on. We are not out of the woods yet, but it will take something drastic for us to get a whole lot lower. [ad] ShareEmailPrintDigg
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