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

Future Retirement Success

Stocks

BUY Signals Continue to Diminish

by February 15, 2024
February 15, 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
Identifying Powerful Trends with This Game-Changing ADX Setup
next post
SMCI Breaks $1,000 Level – What’s Next?

You may also like

Market Responds Bearish to the FOMC

September 23, 2022

Stock Market Stuck with a Plethora of Mixed...

February 4, 2023

The Usual Leaders Are Lagging

November 8, 2022

DP Trading Room: Natural Gas (UNG) Breaks Out!

December 30, 2024

The SPY Knocks on the Door of Resistance

January 29, 2023

What’s Really Driving Tesla’s Surprising Stock Surge?

April 24, 2024

Smashed Names Showing Life

January 20, 2023

Week Ahead: NIFTY Drags Its Resistance Lower; Watch...

December 24, 2022

This Is What I Mean By Leading Stocks...

May 9, 2024

Precious Metals and Miners Ready to Rally

May 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.

    Recent Posts

    • Disabling Trump’s “Tariff Button”

      June 5, 2025
    • ‘Sick puppy’ Tim Walz should never have been on Dems’ 2024 ticket, Trump says

      June 5, 2025
    • Federal judge orders Trump to restore funding to Clinton-era agency gutted by DOGE

      June 5, 2025
    • Musk says Trump would have lost 2024 election without him as ‘Big Beautiful Bill’ feud continues

      June 5, 2025
    • Ex-Biden adviser calls Jean-Pierre ‘kinda dumb,’ deletes tweet, says she’s not a ‘genius-level Black woman’

      June 5, 2025
    • ‘Coming for us’: Expert sounds alarm on CCP’s mission to ‘kill Americans’ after FBI makes shocking arrests

      June 5, 2025

    Categories

    • Business (8,148)
    • Investing (2,010)
    • Politics (15,535)
    • Stocks (3,128)
    • 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