- S&P 500, Nasdaq 100 back in bull phase on the fast stochastic (SPY, QQQQ).
- A wishy-washy fear index (VIX).
- Treasury long-term bonds move to bear phase on the fast stochastic (TLT).
Stocks and Rates
SPY and QQQQ broke into bull phase on the fast stochastic during Wednesday's late-day price recovery. The less volatile indicators -- the parabolic sar, macd and Person's Proprietary Signal (pps) -- remain in bear phase.
The VIX on the fast stochastic is behaving like a very confused pup. The indicator moved to bear phase (bullish for stocks) on Aug. 16, and since then has remained in the neutral zone, twice touching the 80-line but never piercing it. The lesson of this chart is that the only thing we have to fear is wishy-washiness itself.
TLT has been a poster child for capital gains since Aug. 16, a bullish beacon amidst the dank and dark of a dismal stock market. Today the fast stochastic crossed below the 80-line by about four points, and then began tracing a sideways course. It's a bear signal, but of the unconvincing variety.
Oil and Gold
Indicator Exchange-Traded Fund Symbols:
EEM - emerging markets
EUR/USD - euro/dollar currency pair
GLD - gold
JNK - high-yield corporate bonds
QQQQ - Nasdaq 100 index
SPY - S&P 500 index
TLT - Treasury long-term bonds
USD/JPY - dollar/yen currency pair
USO - crude oil
VIX - fear index
- psar - Parabolic Stop and Reverse
- adx - Average Directional Index
- pps - Person's Proprietary Signal.
- ma20 - 20-day moving average
- macd - Moving Average Convergence-Divergence
- sto - Fast Stochastic
About the glance: The colors indicate the state of each signal.
- trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
- adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
- psar, pps, macd: green for bull mode, red for bear
- sto: green for overbought, red for oversold, yellow for the neutral zone.