Tuesday, September 20, 2011

Explanation of ShortTerm Indicator

The Short Term Indicator is based on the average 5 day performance of five indices in combination with volume and breadth readings.  The five indices are:
  • Dow Jones Industrial Average
  • NASDAQ
  • S&P500
  • Russell 2000
  • Dow Transports
The reading can  vary between -4 to +4.

  • -3 to -4 -Massive selling of stocks.  Indiscriminate Selling of Stocks. Panic
  • -2 to -3 - Bearish selling of stocks.  Distribution Days
  • -1 to -2 - Selling of stocks occurring but there is order in the market.  No evident panic in the market.
  • -1 to +1 - Neutral
  • +1 to +2 - Buying of stocks occurring but there is order in the market.
  • +2 to +3 -Bullish buying of stocks on above average volume.  Accumulation Days.
  • +3 to +4 - Massive buying of stocks.  Indiscriminate buying of stocks.  Euphoria
The reading will be posted every day.

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