(click to enlarge)
In the past I’ve demonstrated that it can be used as a market timing tool for swing trades. One “system” I’ve shown here on the blog is to purchase the S&P 500 when the CBI hits a certain level (7 being one of them) and then sell the S&P when it returns back to 3 or below.
Below is an updated performance report of the above “system” covering 1995-present.
I'll keep readers informed of significant changes in the CBI over the next several days until it returns to neutral.