Friday, June 11, 2010

Sitting on a Signal

The stock market indexes are showing higher end of day levels the past two days and three of the past four. This is really welcome after some big 2-3% daily moves previously where it three down out of four. The few signals I spend more time following are getting a little more positive each day. High volume on advancing days will confirm market support and signal recovery.

Below are updates to the recent pair of graphs I've used to observe price trends. First is the S&P 500 index 6 month history line. The red horizontal line is on the 1035 possible support level. Since the last post, the Bollinger Band (not illustrated) lower band line has move to 1039 from 1028 and the mean line is now at 1092, dropping from 1096. It appears that volume this past week on up days, was lower than volume on down days. The second graph illustrates the number of companies in the S&P that are trading at a price higher than the 50 day moving average for the company. It can be viewed as an early signal of a developing rally or the tail of a dying rally.

Click on a Chart to Update