Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Stocks

The Perfect Chart for Navigating 2022

by October 28, 2022
October 28, 2022
The Perfect Chart for Navigating 2022

Bruce Fraser joined me on The Final Bar this week and shared a thought-provoking point & figure chart of the S&P 500 index. With the recent upswing, you can use a horizontal count to identify potential upside targets for the bear market rally. (Yes, I am still labeling this a bear market rally. I’d encourage you to do the same!) But instead of running a point & figure chart for the S&P 500 index, we can also run point & figure charts for the entire 500 members of the index using our Bullish Percent Indexes.

Now it’s always easy to declare the perfect chart once you’ve seen its results during the course of a year. But, in this case, it’s a chart that’s part of our Mindful Investor Live ChartList for good reason!

As of Friday’s close, 66% of the S&P 500 stocks have a buy signal on their point & figure charts. That’s up from around 10% in late September.

Notice the red-shaded areas on the chart, which indicate when the indicator has dipped below the 30% threshold. This happened in May (with a brief break back above 30% before the final breakout), in late June and in mid-October. These “buy” signals occurred just before fairly strong rallies into the June (about 7% from the May low) and August (a 17% rally) peaks.

Now note the purple-shaded areas, which indicate when we saw over 70% bullish readings. These regions coincide with the market peaks in January, March and August. As we pointed out to our Market Misbehavior premium members, the break above the 30% level last week indicated a high probability for a continued rise off the October low for the S&P 500.

So what’s next?

I’m looking for a break above the 70% level as this bear market rally continues. This strength in the Bullish Percent Index is similar to improving breadth conditions we’ve noticed across the board. At some point, however, we’ll most likely see this indicator rotate back below the 70% level. And if this truly is a bear market rally, then that signal could indicate an exhaustion of buyers and a likely retest of market lows!

RR#6,

Dave

P.S. Ready to upgrade your investment process? Check out my YouTube channel!

David Keller, CMT

Chief Market Strategist

StockCharts.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.

The author does not have a position in mentioned securities at the time of publication.   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.

0
FacebookTwitterGoogle +Pinterest
previous post
Person Caught Removing Republican Lee Zeldin Campaign Signs (Video)
next post
HUGE: COVID Vaccine Injury Payments EXPLODE in Australia – More than 80 Times Higher than Last Year

You may also like

Trump’s Policy Shift Reveals Potential Big Winner!

December 28, 2024

A Debit Spread in American Express to Add...

June 14, 2024

Stock Market Weekly Update: 3 Valuable Points You...

October 13, 2023

The Ord Oracle April 18, 2023

April 19, 2023

Tips n’ Tricks to Enhance Your Chart Annotating

May 26, 2023

Equity Markets Struggle to Hold onto “Go” trend...

April 19, 2024

Limited Upside Until This Chart Changes

November 19, 2022

Is This Light Switch Turning On?

January 11, 2023

Size (matters) Over Style!

December 17, 2023

A Risk-off Alternative Turns Up as Stocks Falter

March 17, 2023

Trump’s Policy Shift Reveals Potential Big Winner!

December 28, 2024

A Debit Spread in American Express to Add...

June 14, 2024

Stock Market Weekly Update: 3 Valuable Points You...

October 13, 2023

The Ord Oracle April 18, 2023

April 19, 2023

Tips n’ Tricks to Enhance Your Chart Annotating

May 26, 2023

Equity Markets Struggle to Hold onto “Go” trend...

April 19, 2024

Limited Upside Until This Chart Changes

November 19, 2022

Is This Light Switch Turning On?

January 11, 2023

Size (matters) Over Style!

December 17, 2023

A Risk-off Alternative Turns Up as Stocks Falter

March 17, 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.

    Recent Posts

    • Democratic doctors’ protest against Trump’s ‘beautiful bill’ derailed by flood of US Capitol tourists

      July 2, 2025
    • Missed Disney’s Rally? Grab This Defined-Risk Put Spread for a Second Chance

      July 2, 2025
    • Market Signals Align – Is a Bigger Move Ahead?

      July 2, 2025
    • MACD Crossovers: Why Most Traders Get It Wrong

      July 2, 2025
    • Should You Buy Roblox Stock Now? Key Levels to Watch

      July 2, 2025
    • Wisconsin Supreme Court decides abortion case that prompted most expensive judicial election in US history

      July 2, 2025

    Categories

    • Business (8,365)
    • Investing (2,094)
    • Politics (15,918)
    • Stocks (3,187)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.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 futureretirementsuccess.com | All Rights Reserved