If you have gone to StockTiming.net (.net) in the past, you have seen the formula for creating a Monthly, long term Bull/Bear market chart.
This morning, I would like to post the chart and make a few comments.
The chart is below and under a lot of stress. There is a Federal Reserve impact going on because of the Inflowing Liquidity levels.
Note what is going on with the chart:
- the monthly SPY trend lines are still trending higher.
- the MACD is showing a downside cross-over.
- the MACD is negative and slightly above a support level.
- the C-RSI strength is a strong positive.
- the Stochastic Oscillator is at the Bollinger mid-line with an up tick.
What does this all add up to?
It says that today's market is a mixed, Up condition under a lot of stress.
The Fed will continue to dominate the market's direction until Institutional Investors sell "as a group". When such a time does arrive, the Fed will not be able to match the outflow of funds. So, at this point, hedging any long positions is a prudent idea.