Market update 2/9 3 of 3

Discussion in 'Technical Analysis' started by TradesAfterWork, Feb 9, 2020.

  1. Now we're looking at a chart of the New York Stock Exchange Bullish Percentage Index. We don't have the time to go into the details of how this indicator is put together today.

    The Index is an excellent indicator of whether supply or sellers are in the market versus demand or buyers. It is based on how many point & figure charts are on buy and sell signals. When the NYSE Bullish Percentage Index is in a column of X's it means that the offense (buyers of stock) is on the field, and when the NYSE Bullish Percentage Index is in a column of O's it means defense (sellers of stock) is on the field. While the market is on defense you no longer have the football and it's the job of the market to score against you. Conversely, when this indicator is in a column of X's you have the football, and it is your aim to score. Today the offense is still on the field. However, right now we are at 62.10. If we continue to have more selling and drop down to 60.00, which is just a short distance away, we will reverse into a column of 0's, which brings the defense back on the field.
    upload_2020-2-9_10-24-39.jpeg
     
  2. Someone explain the concept of a thread please.

    GAT
     
  3. Metamega

    Metamega

    Twitter screwed up the internet.
     
    athlonmank8 and d08 like this.
  4. Overnight

    Overnight

    LOL!
     
    tommcginnis and d08 like this.
  5. I attempted to create one thread but the charts wouldn’t download properly. sorry about that guys
     
    globalarbtrader and Nobert like this.
  6. jharmon

    jharmon

    Beware of Garbge in-garbage out (and old programming term).

    You appear to be using the Stockcharts version of the indicator which includes ALL securities traded on NYSE including warrants, preferreds, debt and other weird constructs.

    When I last looked, this was about 20% of the listings on NYSE.

    So you've got 20% noise in there - things that aren't stocks on even remotely like stocks and probably uncorrelated or inversely correlated too.

    Way too much noise.

    Same goes for all other exchange-specific indicators like NYSE A/D lines.
     
    SunTrader likes this.
  7. Jharmon:
    I agree with your statement about Stockcharts. DorseyWright is more accurate.
     
  8. jharmon

    jharmon

    I'm questioning your methodology, not who produces the chart.

    What does DorseyWright do in this area? Can't find much about what they do other than they create some stuff that ETF managers license.