Today’s market activity pushed the major indexes higher and with it our Trend Tracking Indexes (TTI). The domestic TTI has now crossed its long-term trend line by +0.97%.
I will wait another day to see if this was just a one day pop followed by a drop on Tuesday before declaring this a new Buy signal. The domestic TTI only crossed above the line last Friday, and I usually like to see either a 1% move above or 3 trading days in bullish territory before establishing outright long positions.
However, I will move ahead with setting up further hedges regardless of the outcome. Nevertheless, this is crunch time for me, and my posts will be short and succinct for a few days.
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Comments 3
BUY! BUY! BUY!
Does a "VL" recovery suggest that we get back to, or close to, 1350 on the S&P; before we drop again? I mean, that would seem to be the up-leg on the "V".
I totally agree with you Ulli and looking at the S+P versus the 200 day EMA it needs to crack through that to make me feel more comfortable.
Furthermore, if the 50 day crosses above the 200 day EMA (and it is getting closer), we may be off to the races, say 1100-1200 on the S+P.
Thank you for your work.
JC
According to Yahoo Finance charts, SPY was $ 94.85, The 200 day SMA was 92.60 and the 200 day EMA was 92.68, so I would say that test has been met.
I watch moving averages and look at the 100 day, the 150 day and the 200 day moving averages. All of those tests have been met, but today's sell-off (June 3) may or may not bring us below the 200 day EMA.