You Asked, Here it is: The Spearman Indicator

August 21, 2012

The Spearman indicator is a useful tool. In fact, we use some of the calculation/data points for our Key Reversal Indicator.

A chart that we have posted  here before has been updated as we received several requests from readers.

Note that the recent reading was one of the highest Read more

Where is S&P Support – Watch for These Levels

July 23, 2012

There is some decent support coming for the S&P 500 futures contract. We have often looked at the S&P 500 index (cash) for levels, but the futures contract can also hold some interesting clues as to support and resistance levels.

Notice on the chart below that there is a good line of support close to the 50 DMA and the green key support level. That is 1,325. The potential for a bounce if this holds is pretty good as this is an area of accumulation. Read more

Wicked Bounce Potential Ahead… (Spearman Update Too!)

May 20, 2012

We will see how the week plays. But we did some work to see if there is any support for a bounce from what appears to be a fear driven sell-off. Take a look at the weekly chart below. The 40-week is support, down a little from here. This is the similar look as last year at this time, with greater velocity. But, note that 2 standard deviations from Read more

Write this Down – Simple Gameplan that Mindless Managers Follow

April 13, 2012

Okay, I am feeling a bit feisty today, I will admit it…

The good news is that we added to our short position for TDIMG trading accounts yesterday as the low volume was cause for alarm.

It is a robotic duel that will fight for retaining the 50 DMA. Money managers don’t have much creativity, they simply look to defend and add-on at certain levels.

Whatever the reason, they have chosen the 50-day moving average as one of those key levels that they put money to work. At the same time, those that are looking to short are also well aware that managers get their suit in a ruffle if there is a breach below the 50-day moving average for a major index, especially Read more

Just Something To Think About… S&P Monthly Chart

December 15, 2011

I was speaking with my friend Jon Markman last night and we were discussing market volatility. In that time we also wandered into the area of technical analysis and some of the more important signals that are available. One that both of us have been partial toward is rather simple: A 10-month moving average for the S&P 500 (or other index).

This has historically been rather good at showing a ling-term trend of when Read more