This is a two-year daily line chart of the Russell. The S&P is super-imposed in green. Notice that when the gap between the Russell and the S&P widens, there is often trouble ahead. I interpret the Russell as a breath indicator, much like the A&D line.
http://tinyurl.com/ydsjzoe
I have back tested this for the past ten years (studying charts 2 years at a time) and it is fairly reliable. The two indices are joined at the hip in the strongest bull markets, such as from 2003 to 2005. They deviate at tops, one or the other is ahead, and in a majority of cases the Russell is ahead by a wide margin.
In the VST (1-2 days), I am bullish because of the oversold TRIN and because of other indicators. (See incomplete post below.) However, I am not sure about the next month. Also, 2/28 (this Sunday) is the next full moon date. Be careful.
http://tinyurl.com/ydsjzoe
I have back tested this for the past ten years (studying charts 2 years at a time) and it is fairly reliable. The two indices are joined at the hip in the strongest bull markets, such as from 2003 to 2005. They deviate at tops, one or the other is ahead, and in a majority of cases the Russell is ahead by a wide margin.
In the VST (1-2 days), I am bullish because of the oversold TRIN and because of other indicators. (See incomplete post below.) However, I am not sure about the next month. Also, 2/28 (this Sunday) is the next full moon date. Be careful.
5 DMA MSEMX:SPX - bearish -1/1
5 DMA CBOE PC Ratio - bullish +2/2
10 DMA CBOE PC Ratio - bullish +2/2
5 DMA TNX - bullish, but barely. went through 5 DMA, at 20 DMA. +1/2
5DMA QQQQ:SPX - down; bearish -1
5DMA MA TRINQ - very bullish + 2
5 DMA TRIN - bullish
5 DMA USD index - bullish (bearish for equities) but toppy. -1
5 DMA SPX - flat ??
5 DMA GLD -?? bearish?
5 DMA USO bullish
NYMO - not overbought any more
5 DMA NYHL - bullish +2
TICK bullish +1
IWM/SPX - dangerous? (See August 2008 top)
Score:
CONCLUSION: VST Bullish. Then bearish?
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