Market Indicators (as of March 9)

Each weekend, I will list signals from the most popular market indicators.

(A full list of the major indicators with signals can be found in my book, All About Market Indicators (McGraw-Hill).)


AAII survey (3/6/2013)

31.1% bullish. 38.5% bearish.


Sell signal: Over 60% bullish.

Buy signal: Over 50% bearish.


Investor’s Intelligence (3/6/2013):

44.2% bullish. 21.1% bearish.


Sell signal: Over 50% bullish.

Buy signal: Over 50% bearish.


Put/Call Ratio: .62


Sell signal: Lower than .75 is a sell.

Buy signal: Higher than 1.0 is a buy (more puts are being bought)


VIX: 12.59


Sell signal: Lower than 12.

Buy signal: Over 40.


Moving Averages: S&P 500 above all three moving averages


Sell signal: Index crosses below 50-, 100-, or 200-day MA.

Buy signal: Index crosses over MA.


MACD: MACD above zero line and crossed over signal line


Sell signal: MACD line (black line) crosses below zero line. MACD line crosses below 9-day (gray) signal line.

Buy Signal: MACD line crosses above zero line. MACD line crosses above 9-day signal line.


Comment: The trend is your friend until it ends. Moving averages and MACD still going higher but other indicators reflect caution ahead.


Note: These signals are not actionable trades, but only guidelines. Always use other indicators, and your own research, to confirm before buying or selling.

I will notify you of my posts via twitter@michaelsincere

Understanding OptionsUnderstanding StocksStart Day Trading NowAll About Market Indicators