Stock market approaching critical point on intermediate cycle

Weekly Review: MAAD, CPFL indicator analysis

Daily S & P 500 Emini Futures contract with Cumulative Volume (CV)

daily, cumulative volume, emini

Weekly S & P 500 Emini Futures contract with Cumulative Volume (CV)

weekly, sp, cumulative, emini, volume

Index Daily / Weekly / Monthly Stops Weekly Monthly
 

12/10

12/11

12/12

12/13

12/14

12/14

12/31

S&P 500 Index

SELL 1399.52

SELL 1401.55

SELL 1401.80

SELL 1403.07

SELL 1404.89

BUY 1449.74

SELL 1293.26

Dow Jones Industrials

SELL 12889.78

SELL 12908.81

SELL 12918.45

SELL 12939.40

SELL 12968.14

BUY 13465.50

SELL 12313.37

NASDAQ Composite

SELL 2967.92

SELL 2973.92

SELL 2974.04

SELL 2973.67

SELL 2973.63

BUY 3090.05

SELL 2772.87

Value Line Index

SELL 3024.94

SELL 3033.15

SELL 3038.81

SELL 3045.07

SELL 3051.65

BUY 3098.24

SELL 2758.13

Note: Stop levels, a function of the extant trend, are based on the trailing moving average price channels for the Highs or the Lows of an index. Whether or not a specific index is suggesting a “Buy” or Sell” is determined by whether or not index prices are above or below the current channel Stop levels. Stop levels should only be used as an entry or exit guide and in conjunction with other market entry and exit strategies.

McCurtain Most Actives Advance/Decline Line (MAAD)

Daily MAAD continued to out perform S&P 500 last week with indicator recovering nearly 93% of its decline since September 14 indicator highs. But with Daily MAAD Ratio holding in “Overbought” territory (1.62) and with Weekly MAAD still looking lackluster on the upside, we wonder if strength in Daily MAAD is sustainable. In fact, with indicator still holding more than 50% below highs made last March 20, a negative divergence is now extant similar to longer-term Weekly MAAD disparity relative to early 2011 highs. Put another way, the proximity of Daily MAAD to its September highs might look bullish, but if the indicator remains unable to overcome that point, the old “miss is as good as a mile” adage would prove correct yet again.

daily, maad, sp

weekly, maad, sp

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