Posted on Sunday, April 8th, 2012 | In Market Commentary
So says Dr. Nu Yu (http://fx5186.wordpress.com) in edited excerpts from his original article* (which Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has further edited below for length and clarity – see Editor’s Note at the bottom of the page. This paragraph must be included in any article re-posting to avoid copyright infringement.)
Yu goes on to say, in part:
The Broad Stock Market (Wilshire 5000 Index)
The Dow Jones Wilshire 5000 index, as an average or a benchmark of the total equity market, has been in a “Rising Wedge” pattern (see here) for four months. As the wedge apex nears, and the trading range narrows, a downside breakout could be triggered once the lower boundary of the wedge is breached. Currently the Wilshire 5000 index is above the 89-day moving average and it is in the downtrend zone right below the rising wedge and has negative readings in both the trend and momentum.
The Leading Wave Index (LWX) indicator, color coded in the price bars of the following daily chart of the Wilshire 5000 index, closed in bearish last Thursday. Based on the forecast from the LWX, the market should be in a bearish time-window until 4/16/2012 which is right before the US tax deadline. The market may look for support at the 89-day moving average (EMA89).
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Broad Market Instability Index
The Broad Market Instability Index (BIX), measured from over 8000 U.S. stocks, closed at 58 on Thursday. This BIX reading is above the panic threshold of 44 and it indicates that the broad market is bearish. The BIX is plotted in the following chart as compared with the Wilshire 5000 index.
Physical Gold and the HUI and XAU Indices
I have written an extensive article on the above today which I have posted seperately under the title Gold and Gold Stocks Going Even Lower! Here’s Why
Since last April, silver has been in a “Falling Wedge” formation (see here). Although the falling wedge typically has a bullish bias, this bullish bias cannot be realized until an upper boundary breakout.
US Dollar Index
The US dollar index is forming a 16-month “Ascending Triangle” pattern (see here). The partial decline defined at 78.27 could be a bullish sign for the dollar to re-test the upper horizontal boundary of the ascending triangle soon.
The 30 – Year U.S. Treasury Bond
The 30-Year US Treasury Bond index is continuing to form a horizontal channel pattern (trading range) between the upper boundary at 146 and the lower boundary at 135. Currently prices are in the lower half of the trading range.
Asset Class Performance Ranking
The following table is the percentage change of each asset class (in ETFs) against the 89-day exponential moving average (EMA89).
Sector Performance Ranking
The following table is the percentage change of sectors and major market indexes against the 89-day exponential moving average (EMA89).
BRIC Stock Market Performance Ranking
The table below is the percentage change of the BRIC stock market indexes against the 89-day exponential moving average (EMA89).
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Lorimer Wilson is Editor of FinancialArticleSummariesToday.com (F.A.S.T.) and www.MunKnee.com (Money, Monnee, Munknee!) and an economic analyst and financial writer. He is also a frequent contributor to this site and can be reached at email@example.com