- SPX Monitoring purposes; Flat.
- Long-term Trend SPX monitor purposes; Long SPX on 10/14/19 at 2966.15.
Yesterday we said, “There are 500 components in the SPX and when over 350 of those components respond in a SPX rally then that is considered a “Sign of Strength” (SOS). Last week an (SOS) was recorded suggesting there is more to come of this rally. Sometimes there are pull backs before the rally starts and pull back down to fill last week gap near 2950 range is possible before market heads higher.” Above is the CBOE Volatility Index. VIX trades opposite of the SPY (NYSE:SPY) and when they trade together a divergence is present. Over the last week the VIX has made higher lows as SPY made higher highs suggesting a pull back is possible for the SPY. This same setup occurred back at the July high (noted on chart).
This divergence adds weight to the 2950 pull back scenario. Long TermTrend SPX monitor purposes; Long SPX on 10/14/19 at 2966.15. Follow us on twitter. @OrdOracle
The middle window is the NYSE Up volume/NYSE Total Volume ratio. When up volume of total volume reaches above 80%, it considered a “Sign of Strength” and a bullish sign going forward for the market. Back in August and early September and also a couple of weeks ago this ratio did reach above 80% suggesting an intermediate-term low was forming. The top window is the NYSE McClellan Oscillator. Readings above “0” on the McClellan Oscillator show the market is in an uptrend (current reading is 81.78). Market can stumble here but is not setup to far hard. A pull back to 2950 SPX range is possible but not much more. Join us on twitter. @OrdOracle.
Above is a longer-term indicator that has been good at identifying highs on the XAU. Above is the monthly XAU/Gold ratio and the bottom window is the monthly Slow Stochastic of the monthly XAU/Gold ratio. When the monthly slow Stochastic of the XAU/Gold ratio reaches above 80 the XAU was near an intermediate term high. This chart goes back to 1984 and the red horizontal lines identify the times when Slow Stochastic reached above 80.