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| After the close on Friday, July 29th, Thomas Bulkowski's Chart Pattern Indicator for the S&P 500 Index turned bearish. The indicator is a ratio of bullish patterns to the total of bullish and bearish patterns, expressed as a percentage. More details on Thomas Bulkowski's Chart Pattern Indicator background (HERE) |
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| The chart pattern indicator line is not as important as the signals which it generates, but I have included a chart of the indicator itself so you can check for divergence. Divergence often gives hints as to which way the index moves in the future. Look for lower/higher peaks in the indicator while the index is making flat or higher/lower peaks. The index will often follow the indicator (HERE) Warning: If you use this indicator for periods shorter than weekly, you will likely be in for a nasty surprise. Due to the way I have it configured, signals up to a week old can change or disappear. Thhe current sell signal may not be valid for another week or it may change in a few days when more NR7s break out. Thus, this indicator is best used as a weekly signal (that is, signals older than a week are reliable) of market trend (HERE) |