The Indicator Has Turned Red

The indicator (more info here) has turned red. It’s interesting to see the divergence between the S&P 500’s positive direction, and the indicator, which is staying solidly below the threshold.

 

4 thoughts on “The Indicator Has Turned Red”

  1. Thanks for keeping up on this. I back-tested and replicated the same optimal results using the S&P (75 for 10 days). Looking at stockbee’s older data (e.g., 2011) it appears that he just looked at the straight difference up/down using 25% per quarter. He also added in 4% per day somehow to his call back then. Not sure what that was. Have you looked at the 4% indicator?

    1. Glad you’re seeing similar results! I did check the 4% breadth indicator, which you can read about here. Unfortunately it didn’t show a lot of promise.

  2. Thanks Matt. I tried your data against QQQ and came up with 69 for 21 days vs 75 for 10 using the S&P. Have you tried various indexes?

    1. Hi Todd. I haven’t tried it on other indexes, because I wasn’t using it as an actual trading system. It is instead meant to be a more general market-health indicator. Which is not to say you can’t try it elsewhere of course. Just that I didn’t bother. 😀

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