Info!! Tracking The Breadth Of Marketplace Put Describe As Well As Weakness

I idea I would part a continuing travel inward progress.  This is composite index of all NYSE stocks giving purchase vs. sell signals for ii dissimilar technical systems:  Wilder's Parabolic SAR together with Bollinger Bands (raw information from Stock Charts).  The nautical chart higher upwardly tracks a 10-day moving average of the index.  The index provides a full general feel of "overbought" together with "oversold".  Interestingly, the overbought readings create non atomic number 82 to reversal on average.  Rather, if nosotros facial expression at the strongest one-half of signals since June, 2014 (when I began assembling these data), the adjacent iii days inward SPY convey averaged a gain of +.24%.  When nosotros facial expression at the weakest one-half of signals, the adjacent iii days inward SPY convey averaged a gain of exclusively +.01%.  When many stocks are producing purchase signals, at that topographic point tends to travel short-term upside momentum.  When many stocks are producing sell signals, on the other hand, nosotros desire to travel on the sentry for potential reversal.

Note that we've been seeing overbought together with oversold levels inward the index at successively higher cost levels.  That is what nosotros would facial expression inward an uptrend.  Where I've constitute the index to travel especially useful is inward identifying momentum peaks that tend to precede cost peaks during intermediate-term cycles.  The index has too been useful inward identifying when nosotros are getting buying involvement coming out of oversold levels.  That is what we've been seeing virtually recently.  I similar these kinds of measures, because they say y'all how much distinctive forcefulness together with weakness we're seeing across the wide gain of stocks.

Further Reading:  Identifying Trend Days
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