• 2 days How To Invest In The Cybersecurity Boom
  • 3 days Investors Are Patient With Unprofitable Giants
  • 5 days Wells Fargo Back In The Scandal Spotlight Once Again
  • 7 days 5 Stocks To Keep A Close Eye On This Year
  • 9 days As Auto Giants Flail, Look To Chip Stocks For Gains
  • 9 days Central America Is Ready For The Bitcoin Hustle
  • 11 days China’s Video Game Restrictions Unlikely To Slow Down Booming Industry
  • 12 days Top Performing Stocks As Inflation Fears Grow
  • 13 days US Airline Stocks Take A Beating On New EU Restrictions
  • 14 days This IPO Could Open Sustainable Fashion Floodgates
  • 15 days Crypto Crime Nets Another $2B Fraudster
  • 17 days This Week’s Hottest Meme Stocks
  • 19 days Why World Markets Should Be Watching Germany Closely
  • 21 days Could ‘Cultured’ Meat Rival The Plant-Based Megatrend?
  • 23 days ‘Easy Money’: Crypto Is Still Attracting Newbie Investors
  • 25 days Foreign Syndicates May Have Stolen Up To $400B In COVID Benefits
  • 26 days Gold Jumps Above $1800 Ahead Of Jackson Hole Summit
  • 26 days International Banks Blacklist Afghanistan Following Taliban Takeover
  • 27 days China’s Tycoons Are Getting A Serious Reality Check
  • 29 days U.S. Cannabis Space Heats Up With Telling Tilray Acquisition
  1. Home
  2. Markets
  3. Other

A Christmas Gift

My Hybrid Lindsay model calls for a low near last Friday (chart) and a high on Thursday, December 24. This matches typical option expiration behavior seen this year when equities tend to rally into OPEX (this Friday) and change trend soon after.

In addition, the McClellan Oscillator closed on Friday well below its lower Bollinger Band (200, 1.5). History has shown that a quick dip to just below the lower band usually results in a conclusion of the previous correction. However, a dip closer to negative 300 (as on Friday) often forecasts a lower low in equities (after a small bounce) or at least a test of that low.

Finally, the VIX, after bottoming on the previous Friday's 34-day cycle low, had its best week since late August with a gain of 9.58 to close at 24.39 and above the upper Bollinger Band (20, 1) which is often a buy-signal for equities. Today is an expected monthly cycle high which forecasts a low in equities.

S&P500 16-Year Chart
Larger Image

 


Click here to get your copy of the December Lindsay Report.

 

Back to homepage

Leave a comment

Leave a comment