In review of the charting for ICI,iShares S&P 1500 Index, lift off has taken place as the price line has moved nicely upward from the 200SMA line, where it held, and has now reached the 65SMA line which in this case would be considered the resistance line. Should it be able to continue its upward movement through the resistance line of the 65SMA line then … Breakout!
In review of the MACD … Notice it has bottomed, turned upward and the blue moving average price line has recently moved above the red moving average price line. A bullish move and trend.
In review of the Slow Stoch … Notice that it recently bottomed and has move sharply upward, through its resistance (50) and is now approaching (80). Caution here … as this might signal an overbought condition.
In review of the Money Flow … Nice upward move as money has returned. The question though … Has it peaked and will it level out or retreat as investors sell and take profits? If buyers continue to pay the sellers ask price … then the uptrend perhaps continues.
I have linked below the charting for ICI your easy reference and study.
http://finance.yahoo.com/echarts?s=isi#chart1:symbol=isi;range=1y;indicator=dividend+split+sma(10,65,200)+macd(27, 12, 9)+mfi(10)+stochasticslow;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined
Today will be an interesting day.
Good Investing,
Skeeter
Comments
As time allows, I have been peeking at the Relative Strength indicators of various sectors and some did drop down to low levels. But, I am not convinced that the broad equity market in the U.S. is ready to move upward; and anticipate sideways movements for the next several months.
Digging through some of the many posts this Friday morning to find whether I should dispense with any chatty talk from my not yet awake brain cells.......a most dangerous situation, yes?
Thank you for the thoughts and link.
Regards,
Catch
I agree that things could still be slow through the summer. I am not saying by anymeans all systems are a go. Indeed, some sectors are trailing while others seems to be leading. The defensive broad sectors of the S&P 500 Index have been leading for the past 90 days ... Utilities, Health Care and Consumer Staples. While over the past 30 days Industrials, Consumer Discretionary and Materials are the leaders. Seems like a leadership change is in the making. This might explain why we have had such a strong reversal ... and, perhaps some more upward movement in stocks. Still, stocks have a history of being sluggish during the summer.
Good Investing,
Skeeter