Greetings fearless forecasters.
StockCharts.com has a chart that combines the SP-400, SP-500 and SP-600. I have found these SP-1500 charts to be one of if not the best series of chart to keep you on the right side of the markets so this weekend sharing what I have learned about the three charts. Here are the symbols to look at. $SUPHLP is the SP-1500 New Highs minus New Lows with a 10 day EMA moving average. The first lower panel is the SPY the second lower panel is today's value minus yesterdays value. As long as $SUPHLP is above the EMA(10) hold long positions.
Next chart symbol $SUPADP is a cumulative chart of the SP-1500 Advance minus Decline Percent. Use this chart to confirm trend has changed from up to down after $SUPADP drops below the EMA(10).
Next chart symbol is $SUPUDP is a cumulative SP-1500 Volume Advance minus Decline. The method is to monitor the $SUPADP and $SUPUDP using standard technical analysis methods as these chart are early warning.
Most of the time this method will top, a trend change of a few months will then see price make a new high as these three charts make a negative divergence lower high. Risk management would typically be to take profits of say 50% as the trend changes then take more profits at the negative divergence set up occurs then put on shorts.
Currently $SUPADP has made a new high July 19th as price has made a new high also. The caution comes from the volume model $SUPUDP. It topped March 1st drifted sideways until July 1st topping July 19th also so what we have so far if the $SUPHLP today minus yesterday peaked at +15 June 2nd drifted sideways topping at +13 July 20th which is still well above the EMA(10). The fist caution comes from volume while advance minus decline remains positive. I will follow this model and share it with Fearless Forecasters' until we get a quality sell signal. I tried to post the chart but failed to get it into this post. Try it again in reply.
Best,
Larry d:^)
Edited by LarryT, 22 July 2017 - 11:42 AM.