Last week the intermediate sentiment signal (the blue signal line in Chart 1 below) is close to crossing above a 1/3 rise from its minimum (pink line). This indicates that we are entering an intermediate buy period which will last until the intermediate signal line climbs to 2/3 above its minimum. However, the long term sentiment remains bearish and the slope of the 200 day simple moving average (200 SMA) is beginning to turn negative which is another long term bearish signal. But a new signal that I have developed (see chart 2 below) indicates that it is not likely that we are to experience a 2001 or 2008 market crash scenario. Therefore, this may be a good time to begin incremental purchases of an S&P 500 Index Fund or similar.
Chart 1
Chart 2: New Signal
No comments:
Post a Comment