Baseline Analytics Blog

Market risk assessment tools and tactical investment opportunities driven by curated financial insight

Short-term Negative Momentum Signals

At Baseline Analyitcs, we review about 30 key charts per day.  Two charts recently have flashed negative (bearish) indicators.

We track the momentum activity printed by the NYSE McClellan Oscillator. Note on the chart below, the vertical lines: green being bullish, red being bearish.  Note on our NYMO chart below, the solid red line on the right, which corresponded quite well with a "near peak" in the S&P 500 (pink line). Other bullish and bearish signals can be compared to recent levels of the S&P 500. 

NYMO07102017 

Our next chart is the % of stocks in the S&P 500 trading over their 50-day moving average.  We have recently seen a shift of that indicator below its 34-day exponential moving average.  Note the grren and red vertical lines and how they correspond with short-term peaks and troughs in the S&P 500.

 

50R07102017

 We utilize indicators such as these in order to decide whether to hedge equities in a positive or negative fashion.

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