Gold has been in an uptrend for the past 358 trading days, marking the 8th-longest trend since the 1970s.
Here’s the chart:
Let's break down what the chart shows:
The black line in the upper panel indicates the price of gold. The blue line represents the 50-day moving average, while the red line shows the 200-day moving average of gold.
The black bars in the bottom panel indicate days when the 50-day average is greater than the 200-day average.
The Takeaway: To clarify, I identify a strong uptrend when the 50-day moving average is above the 200-day moving average. Currently, gold is experiencing one of the longest uptrends in the past 60 years, ranking as the eighth longest overall so far. At this point, there are no signs of this trend slowing down, as it continues to move upward and to the right on the chart. Therefore, it's difficult to be pessimistic about gold at this time.
However, Right now the 50-day moving average is 12.4% above the 200-day moving average. The last time the trend...
After 5 months of consolidating, the S&P 500 Advance-Decline line has closed at an all-time high.
Here’s the chart:
Let's break down what the chart shows:
The black line represents the S&P 500’s Advance-Decline line.
The Takeaway: The Advance-Decline Line is one of the purest ways to analyze market breadth to assess overall market strength.
It measures the number of stocks participating or not.
The concept is super simple.
We add the number of stocks moving higher and subtract the number of stocks that are declining. Then, we add that sum to the previous day's Advance-Decline Line value.
When the Advance-Decline Line rises, it indicates broad market participation. Conversely, when it falls, this suggests that more stocks are declining than advancing, which is a sign of market weakness.
Currently, the S&P 500 Advance-Decline Line is at its highest level ever, which indicates that market internals are strong.
This type of strength supports the potential for a sustainable...
The size of the lower wick for the S&P 500 in April was 15.2%.
Here’s the chart:
Let's break down what the chart shows:
The greenand red candlesticks in the top panel is the S&P 500 index price.
The black bars in the bottom panel represent the size of the lower wick in percentage terms.
The Takeaway: What is a wick?
A wick refers to the lines on a candle in a candlestick chart. A wick indicates the fluctuations of a stock's price in relation to its opening and closing prices.
A lower wick indicates how much sellers drove the price down, followed by buyers stepping in with a significant response. Typically, when we see a long lower wick, it signals a potential transition from a bearish to a bullish environment.
It's a valuable tool for us to understand market psychology and potential trend shifts.
In April, the S&P 500 showed a significantly large lower wick, measuring over 15.2% in size. Other instances of wicks this...
