Connect with us

Hi, what are you looking for?

Stocks

“Bear Shift” Changes Character of the Market

We decided that it was time to come up with a name for Silver Cross Index and Golden Cross Index crossovers their signal lines. We’ve noticed that Silver Cross Index crossovers are excellent flags to intermediate-term changes in direction.

We’ve decided to name these crossovers “Shifts”. A “Bear Shift” for a downside crossover the signal line and a “Bull Shift” for an upside crossover the signal line. These crossovers ‘shift’ the character of an index, sector or industry group from bullish to bearish or vice versa.

Today we had a Bear Shift on the SPY, SP600 (IJR), Nasdaq Composite (ONEQ), Dow Industrials (DIA) and the SP100 (OEX). The Nasdaq 100 (NDX) has already seen a Bear Shift of the Silver Cross Index.

On the chart below we’ve marked some of the most recent Silver Cross Index (SCI) crossovers on the SPY. Remember we use a vertical red dotted line to indicate major market tops and a green vertical dotted line to denote major market bottoms. These downside Bear Shifts have been quite prescient.

With participation dropping off the map for %Stocks > 20/50/200-day EMAs, the Silver Cross Index will continue to decline as it measures how many stocks have a 20-day EMA above their 50-day EMA. Therefore, those %Stocks > 20/50-day EMAs need to at least be close to the Silver Cross Index percentage in order to see upside movement.

Conclusion: Direction changes are important on the Silver Cross and Golden Cross Indexes, but crossovers are particularly important. Today’s Silver Cross Index “Bear Shift” suggests we are in for more than a short-term decline.

Learn more about DecisionPoint.com:

Watch the latest episode of DecisionPoint on StockCharts TV’s YouTube channel here!

Technical Analysis is a windsock, not a crystal ball. –Carl Swenlin

(c) Copyright 2023 DecisionPoint.com

Helpful DecisionPoint Links:

DecisionPoint Alert Chart List

DecisionPoint Golden Cross/Silver Cross Index Chart List

DecisionPoint Sector Chart List

DecisionPoint Chart Gallery

Trend Models

Price Momentum Oscillator (PMO)

On Balance Volume

Swenlin Trading Oscillators (STO-B and STO-V)

ITBM and ITVM

SCTR Ranking

Bear Market Rules

DecisionPoint is not a registered investment advisor. Investment and trading decisions are solely your responsibility. DecisionPoint newsletters, blogs or website materials should NOT be interpreted as a recommendation or solicitation to buy or sell any security or to take any specific action.

    You May Also Like

    Politics

    When George Santos mentioned his family during his congressional campaign, the New York Republican often reflected on the work ethic and strength of his...

    Business

    Two of Sam Bankman-Fried’s top business partners — a co-founder of the cryptocurrency exchange FTX and the former CEO of the hedge fund Alameda...

    Sports

    Kicker Alejandro Mata is following former Tigers coach Deion Sanders to Colorado. ‘Thankful to be committed and signed to the University of Colorado,’ Marta wrote on...

    Stocks

    SPX Monitoring Purposes: Sold long SPX 1/27/23 at 4070.56 = Gain 6.51%; Long on 12/20/22 at 3821.62. The top window is the cumulative GDX...

    Disclaimer: SecretCharts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 SecretCharts.com | All Rights Reserved