Three Views Of The Breadth Of Stock Marketplace Strength

Here are updated charts for what nosotros mightiness telephone telephone the breadth of marketplace pose forcefulness as well as weakness.  (Raw information from the fantabulous Stock Charts site.)  Any private stock tin hand a purchase or sell indicate according to rules from a technical trading system.  The operate past times nautical chart reflects Wilder’s Parabolic Stop-and-Reverse (SAR) system; the middle nautical chart tracks a organization based on Bollinger Bands; as well as the bottom nautical chart follows a organization derived from Lambert’s Commodity Channel Index.  The charts reverberate the residue betwixt purchase signals as well as sell signals for all NYSE stocks on a daily basis.  They so capture the breadth of forcefulness as well as weakness for the full general market.

As a whole, the signals tend to operate past times out ahead of toll during intermediate-term marketplace pose cycles as well as bottom before long ahead of price.  Of the 3 systems, the SAR tends to endure the fastest moving (greatest atomic number 82 times); the CCI the slowest.  When all are inwards sync, turning lower or turning higher, nosotros by as well as large uncovering ourselves inwards the relatively early on stage of a trending move.  I uncovering the interplay alongside the signals to endure helpful inwards identifying where we’re at inwards those intermediate-term cycles. 

Note that SAR has lately turned negative, despite the recent toll strength.  The Bollinger Band mensurate is coming off a high reading only remains positive.  The CCI organization lately gave a high reading, which has preceded the virtually recent marketplace pose strength.  It has fallen off that high only remains neutral.  As a whole, the signals are showing reduced breadth of marketplace pose strength, only non internet weakness–consistent with the waning breadth readings noted inwards yesterday’s post.    

Further Reading:  Tracking the Breadth of Market Strength

Leave a Reply