Stock market advances despite weak indicators

Weekly Review: MAAD, CPFL indicator analysis

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

emini, volume

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

emini, cumulative, volume

 

Index Daily / Weekly / Monthly Stops Weekly Monthly
 

1/21

1/22

1/23

1/24

1/25

1/25

1/31

S&P 500 Index

SELL 1458.17

SELL 1460.70

SELL 1462.73

SELL 1464.93

SELL 1467.39

SELL 1391.74

SELL 1310.68

Dow Jones Industrials

SELL 13364.87

SELL 13391.91

SELL 13412.96

SELL 13434.88

SELL 13465.23

SELL 12899.21

SELL 12445.73

NASDAQ Composite

SELL 3093.99

SELL 3096.53

SELL 3098.97

SELL 3104.45

SELL 3108.12

SELL 2933.93

SELL 2809.46

Value Line Index

SELL 3255.40

SELL 3262.11

SELL 3268.80

SELL 3276.07

SELL 3284.42

SELL 3012.55

SELL 2779.90

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.

In sum, bullishness here and there notwithstanding, we continue to believe the stock market is a lot closer to a long-term high than not. While all cycles remain positive, as reflected in the table at the outset of this Weekly Summary, we continue to believe that the lines of supply for this market are getting thinner and thinner as pricing gets further and further down the road. As we noted in last week’s summary, while the major indexes posted historic gains from March 2009 through early May 2011, using nearly the same amount of time since then, the gains have only been a fraction of that first part of the bull market because of the inability of prices to overcome more frequent bouts of selling and because of only sporadic indicator confirmation on the upside.

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