TRENDLINES
I don't use trendlines very often, I prefer moving averages, eg. 50 SMA to depict a trend. Trendlines often being to subjective, but in the chart of the Dow Jones it can be seen how usefull trend lines can be.
The chart of the S&P 500 is not so clear. Alhough the index being up this year, there is a broader feeling amongst traders the markets not doing very well. How does this come?
First, lt's see the charts of the Dow and the S&P, both probably taking today a breazer.
This broader sense of markets going nowhere can be understood if you look at stocks moving above or below their 50 SMA's. The ratio just moving in a range of 350 and 225 since a few monts so going sideways, on average the amount of stocks moving above their 50 SMA is not increasing and I suppose this being responsible for the general feeling by some these days.
Systemtrading
Dow Jones
trends
The chart of the S&P 500 is not so clear. Alhough the index being up this year, there is a broader feeling amongst traders the markets not doing very well. How does this come?
First, lt's see the charts of the Dow and the S&P, both probably taking today a breazer.
This broader sense of markets going nowhere can be understood if you look at stocks moving above or below their 50 SMA's. The ratio just moving in a range of 350 and 225 since a few monts so going sideways, on average the amount of stocks moving above their 50 SMA is not increasing and I suppose this being responsible for the general feeling by some these days.
Systemtrading
Dow Jones
trends
posted by Carlo Giuntoni at 11:50 AM
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