Silver Cross Index is Topping on Broad Market Indexes
(Below is an excerpt from the subscriber-only DecisionPoint Alert on DecisionPoint.com for Thursday, 1/4):
Most are familiar with what a "golden cross" is, a 50-day MA moving above the 200-day MA. Today we will talk about a "silver cross". A "silver cross" is when the 20-day MA crosses above the 50-day MA. Stocks with a 20-day MA above the 50-day MA have bullish biases in the intermediate term.
We came up with the Silver Cross Index which measures how many stocks have a silver cross or a bullish IT bias. When the Silver Cross Index is above its signal line, we have a bullish IT bias.
Thursday the Silver Cross Index for the S&P500 topped and we noticed it wasn't the only one. In the chart below you can see that the Nasdaq and NYSE Silver Cross Indexes also topped.
Here is a chart of all of the market indexes we cover. You can see that all but the Dow Industrials and OEX have topped. The Dow and NDX held the same readings, but both look toppy.
Conclusion: While the intermediate-term biases remain bullish given the Silver Cross Indexes are above their signal lines, deterioration is being detected and should keep us alert to broader weakness within the market.
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