Percent of S&P100 (OEX) components above 200-day MA ($OEXA200R)
Just passing along this article that asks the question "is this the best stock market indicator ever?"
http://www.advisorperspectives.com/d...Ever-Part1.php
Here's an updated discussion:
http://advisorperspectives.com/dshor...ver-Update.phpI have read the article and tried the indicator and honestly, I'm not impressed. I give respect to the author for trying it out but I don't see it being practical for most traders and there are better strategies out there.
The author recommends to "STOP ALL TRADING" when the signal drops below 50%? Because of that answer I don't see how it can be implemented. It can't tell you when to short and a lot of the time you are just sitting at the sidelines. Who is this signal meant for? It seems like it's more geared for long-term investors with retirement accounts. But if these people don't know how to trade do you think they the first thing they'll be using is macd and stoch?
Ironically this indicator is sitting right on top of its MA200
Here is another technical tool to add to your toolbox.
There are many ratios used in technical analysis to gauge risk-on, risk-off trends including the high yield index to investment grade bond index ratio, copper to gold ratio, and one of my favorites the consumer discretionary to consumer staples ratio. Historically as the market rises the discretionary-staples ratio and the S&P500 increase in correlation reflecting capital flows into risky assets (e.g. equities). It is well known in technical analysis circles that the ratio of discretionary to staples indexes can often act as a leading indicator for the broader stock market.
The chart below shows a snapshot of where the markets stand at this moment. Note the discretionary-staples ratio is not signaling a bullish course of events.
The percent of S&P100 stocks trading above their 200DMA has set a new 6-month high.
http://advisorperspectives.com/dshor...ver-Update.php