Wednesday, March 14, 2012

A Compelling Sign Of Intermediate-Term Strength

Yesterday’s move to new highs was accompanied by very strong breadth. The Up Volume % on the NYSE came in at 91%. It is fairly unusual to see such strong breadth occur when the market is hitting an intermediate-term high. The results below show all non-overlapping instances of a 50-day SPX high with greater than 90% upside volume since 1970.



These results are very compelling. 100% winners (16 for 16) and the average instance closed up 5.8% when looking out 50 days. This appears to be a nice piece of evidence for the bull case.

3 comments:

Tatitrader said...

Hi, Whats the symbol for SPX and VIX in Tradestation?

Thanks for your help and great work,
Tania

Marc Garrigasait said...

Interesting post, but I'm not sure that last 27th october 90% up volume confirms this. I think after 50 day the market goes down.

Please may you confirm this?

Thanks,

Marc Garrigasait

Rob Hanna said...

Tatitrader -

$SPX.X and $VIX.X

Marc -

Overlapping instances are not considered in this study. The signal came on 10/18/11.

Best,
Rob