BarroMetrics Views: S&P 2014-09-24
Figure 1 shows the S&PP threatening to trigger an 18-day Upthrust change in trend from up to down – if we see a bearish conviction close 1988. This close would suggest a move to at least the Primary Buy zone at 1920 to 1909; and normally we’d expect to see the start of the down move by acceptance below 1904.
The 13-week swing change line price this week is coming in at 1894. If we do see a valid 18-day Upthrust, we’d need to watch this price to see if provides support for a bounce.
It’s a sign of the times that I am not going to take the sell signal. Figure 2 shows why. The FRED AMB is shows no sign of a decline. I’d need to see that occur before changing my current strategy of being ‘long or out.
FIGURE 1 S&P cash 18-day Swing
FIGURE 2 FRED