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Wednesday, August 26, 2015

Keystone's SPXA150R Indicator

Keystone's SPXA150R Indicator: The neutral range is from 25 to 80.  When the bulls are rallying over time, the indicator moves upwards over 80 indicating that markets are getting into more and more lofty territory, thus, the bearishness increases the higher the indicator moves.  Bearish at 80-85, Strongly Bearish at 85-90 and Uber Bearish at 90+. The 90+ area is typically a fantastic place to short from; you will typically notice euphoric market sentiment. If SPXA150R is over 90 you had better be buying puts, seeking other protection, ditching longs and going short. 

Conversely, when the broad market selling is overdone, and the indicator moves down towards and below 25, the selling is becoming out of hand and a reversal back up is in orderBullish at 25-20, Strongly Bullish at 20-15 and Uber Bullish sub 15. The SPX dropped to 12 which is uber bullish so you knew a relief rally was about to occur, and it did. Stocks will receive more oomph with the SPXA150R moving above 25 and higher. 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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