NYSE Bullish % Index Back in Bear Mode

Discussion in 'Trading' started by hayman, Jun 17, 2009.

  1. hayman

    hayman

    The telltale longer-term bellweather index for the stock market (all NYSE stocks) just went "bear" tonight, following today's market action. For those of you who religiously follow P&F Charting, and follow this index, the tide has officially turned. See chart at:

    http://stockcharts.com/def/servlet/SC.pnf?c=$BPNYA,P

    (cut/paste the entire link above into your browser, since ET won't highlight the whole thing)

    Hard to predict the fall, but looking at my charts, I think we will re-test DOW 7,600, before looking to re-ascend.

    NYSE Bullish % won't get you in at the very bottoms or out at the tippy tops, but will gauge you well. For example, it is telling us tonight to get out at DOW 8,500 (when the peak was over 8,800), and on last rally had us get in at DOW 7,100 (when the bottom was around 6,500). A very sound strategy, that beats the hell out of Buy & Hold. I trade my 401K's using this strategy.

    This index got me out of stocks at DOW 13,000, before the recent credit crisis crash. It is worth the education, by visiting:

    http://www.dorseywright.com

    I recommend his book, offered on his site as well.