Money Control Place
  • Politics
  • Business
  • Stocks
  • Investing
  • Politics
  • Business
  • Stocks
  • Investing

Money Control Place

Stocks

BUY Signals Continue to Diminish

by February 16, 2024
February 16, 2024
BUY Signals Continue to Diminish

A Golden Cross BUY Signal is generated when the 50-day EMA of a price index crosses up through its 200-day EMA. DecisionPoint’s Golden Cross Index (GCI) shows the percentage of stocks in an price index have a Golden Cross BUY Signal, and is an expression of long-term strength.

A Silver Cross BUY Signal is generated when the 20-day EMA of a price index crosses up through its 50-day EMA. DecisionPoint’s Silver Cross Index (SCI) shows the percentage of stocks in a price index have a Silver Cross BUY Signal, and is an expression of intermediate-term strength.

Let’s focus on the Silver Cross Index on the chart below. We can see that it has moved down from a high of about 90 percent in January to 72 percent, which creates a negative divergence against the rising price index (SPY). In order to lose a Silver Cross BUY, price must move below the 20-day EMA and 50-day EMA. Rreferring to the chart panels showing % Stocks > 20EMA and 50EMA, currently 62 percent of stocks are below both of those EMAs, meaning the SCI can drop another 10 percent. As the SCI continues to deteriorate, that will put downward pressure on the S&P 500.

The long-term picture on the Golden Cross Index is not so pressing. The GCI is currently at 73 percent and the % Stocks > 200EMA is at 69 percent, which is not a serious amount of potential deterioration.

Conclusion: The rally is being undermined by continued deterioration in the percentage of stocks with Silver Cross BUY Signals. The fact that prices continue to rise demonstrates the increasing influence of larger-cap stocks, so it is not guaranteed that prices will ultimately break downward. Nevertheless, it is not a healthy condition, and increased caution is needed.

___________

These are the market, sector, and industry group indexes for which we have individual Silver Cross and Golden Cross Indexes.

Learn more about DecisionPoint.com:

Watch the latest episode of the DecisionPointTrading Room on DP’s YouTube channel here!

Try us out for two weeks with a trial subscription!

Use coupon code: DPTRIAL2 at checkout!

Technical Analysis is a windsock, not a crystal ball. –Carl Swenlin

(c) Copyright 2024 DecisionPoint.com

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

DecisionPoint is not a registered investment advisor. Investment and trading decisions are solely your responsibility. DecisionPoint newsletters, blogs or website materials should NOT be interpreted as a recommendation or solicitation to buy or sell any security or to take any specific action.

Helpful DecisionPoint Links:

Trend Models

Price Momentum Oscillator (PMO)

On Balance Volume

Swenlin Trading Oscillators (STO-B and STO-V)

ITBM and ITVM

SCTR Ranking

Bear Market Rules

0
FacebookTwitterGoogle +Pinterest
previous post
Is Now A Good Time to Invest in Edge Computing?
next post
Identifying Powerful Trends with This Game-Changing ADX Setup

Related Posts

Why the Santa Rally Stumbled; QQQ Sets Up...

December 11, 2023

Commodities Trade Analysis: Aluminum

January 10, 2024

Dow Jones and S&P 500 Close At Record...

January 20, 2024

Beware the Hindenburg Omen!

February 10, 2024

Top Five Charts of 2023 #1: S&P 500

December 18, 2023

Sector Spotlight: Energy & Tech’s Opposite Seasonal Rotations

July 31, 2023

The Best Technical Indicator for Long-Term Investors

February 24, 2024

Week Ahead: Technical Setup Stays Weak; NIFTY May...

March 17, 2024

This is the #1 Options Income Strategy You...

May 14, 2024

GNG TV: GO TRENDS Emerging Across the Globe!

December 30, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Fed Watch: Key Bullish Patterns in the S&P 500, Utilities, and Crypto

    • Three Charts to Watch for an “All Clear” Signal

    • Use This Multi-Timeframe MACD Signal for Precision Trades

    • The Unpredictable Stock Market: How to Make Sense of It

    • Crypto Market Recap: New Hampshire Launches First State Crypto Reserve, Trump Stirs Controversy

    • SAGA Metals Extends Claims at the Radar Ti-V-Fe Project –Securing the Entire Titanomagnetite-Bearing Intrusion

    Categories

    • Business (1,181)
    • Investing (2,402)
    • Politics (3,699)
    • Stocks (1,551)
    • Uncategorized (20)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: MoneyControlPlace.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 moneycontrolplace.com | All Rights Reserved