The S&P 500 (SPY) bear trend, which was signalled on Wednesday, a day before Thursday’s dramatic price decline, strengthened to above 25 on the average directional index (adx).
The Nasdaq 100 (QQQ) broke below the price channel into bear phase.
The fear index (VIX), a volatility measure, broke beyond the price channel into bull phase.
Treasury long-term debt (TLT): It’s bull phase strengthened to above 20 on the adx.
Corporate high-yield debt (JNK), crude oil (USO) and emerging markets (EEM) moved to price channel bear phase.
Private Trader will be on a limited vacation schedule through Labor Day, Sept. 6.
Indicator Exchange-Traded Fund Symbols:
EEM - emerging markets
GLD - gold
JNK - high-yield corporate bonds
QQQQ - Nasdaq 100 index
SPY - S&P 500 index
TLT - Treasury long-term bonds
USO - crude oil
UUP - U.S. dollar index
VIX - fear index
- chan: 55-day price channel phase, with green for bull trend, red for bear trend and yellow for neutral trend. I use the base rule for phase changes: A 55-day channel phase continues until the price has crossed beyond the opposite 20-day channel boundary.
- adx: Average directional index location, indicating the strength, or the temperature, of the trend. Orange for 40 or greater, aqua (light blue) for 25 and up but below 40, magenta (light purple) for 20 and up but below 25, and brown for anything below 20. (Mnemonic: Orange for the overhead sun, blue for the surrounding sky, magenta for sunset on the horizon and brown for the earth.)
- adx tr: Average directional index trend, indicating whether the trend is strengthening or weakening. Green for strengthening (up), red for weakening (down), yellow for unchanging (yellow).
- psar: The parabolic sar, either green for bullish or red for bearish.
- macd: The macd, either green for bullish or red for bearish.
Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment. No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.The trader’s greatest sin is inaction. Sleeper, awake! Seize the Nietzchean moment. Roll out of bed and trade.