Jim Van Meerten - BarChart Weekly Stock Market Indicators W/E 9/4/09
This was a pivotal week. The Market was down for the first 3 days but came back the last 2 closing slightly down. As measured by the Value Line Index we were down a net of 1.41% for the week.
1 - Value Line Index - I use this index because it is a broad arithmetic index covering 1700 of the largest stocks on the exchanges. Better that 95% for the entire US market capitalization.
BarChart evaluated the index as an overall 56% BUY with their short term indicators a 60% BUY - Good signThe Value Line Index trended above it's 20, 50 & 100 Day Moving Average - Good sign
The Value Line Index is still trending in a positive upward trend
2 - BarChart Market Momentum - This week BarChart monitored 5900+ stocks
Percentage of stock trading above their Daily Moving Averages:
20 DMA - 57%50 DMA -78%100 DMA - 84%
Since better than 50% all stocks are trading above their DMAs a good bullish sign.
3 - Ratio of New Highs to New Lows - When there are more new highs than new lows that's a bullish sign
20 day new high/ low ratio - 655 highs/336 lows = 2.0165 day new high/ low ratio - 470 highs / 239 lows = 1.97100 day new high/ low ratio - 432 highs / 51 lows = 8.47
Since the ratio is positive for all three time periods that's a bullish sign.
Summary: Although the market was down for the week and all trends were not as strong as last week we still feel that its a good time to be invested in the stock market and in your 401K
Code Green - investors have a green light to proceed.