Stock chart patterns and technical analysis (TA) explained simply. Disclaimer: This blog and all its contents are for educational and entertainment purposes only. Do not trade or invest based on any information seen on this blog. Please read Terms of Service. The K E Stone blog sites (Keybot the Quant) are blacklisted by Google, so enjoy the ad-free experience, and only use the Donate button when supporting the sites.
Monday, January 29, 2018
NYSI McClellan Summation Index and NYA NYSE Composite Daily Charts
The NYSI is staggering sideways like a drunk in Times Square on Saturday night. The 20 and 50-day MA crosses are verification signals for the trend ahead. You want to see the 20 MA move at least 1% beyond the 50 MA before you are completely sure of the direction move. The 20/50 MA cross is a lagging indicator as the chart clearly shows. The 20-day MA is at 660 far above the 50-day MA at 534 giving the upper hand to the bulls.
Market bears need the NYSI price line to drop below the 20-day MA since this will curl the 20 downwards and move the 20 down towards the 50 for a potential negative cross. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
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