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Monday, February 20, 2023

Important Market Indicators from BreakPoint Trades

 stock here: check these out and if you want to navigate the upcoming jolts up and down, mostly down, then consider a free membership.   They have a lot going for them. 

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One thing that makes Breakpoint Trades unique is that we actually share the URL's to our real Stockcharts.com charts, whereas most services either only show images of their charts, and/or hide their chart settings.  In or newsletters for years now we have shared the direct live chart URL next to each chart.  Please note I'm building out this database and at the moment there's no real organization here; I'm simply adding the data and will organize it after I've finally added all. 

Here's a list of these useful chart links below:

PMOBUYALL, All Index % PMO system

This chart plots the PMOBUYALL, which can be used as a generic buy and sell system for the general market.  Aggressive buy signals are generated when the indicator is buried and turns up, and sell signals when the indicator falls below 66%. My suggestion would be to look for other confirmations and to use this only as an overall guide instead of exclusively. 

Breadth Chart showing NYSE New Highs and Lows Chart

Breadth chart showing the NYSE new highs and new lows; look for divergences where new highs and lows are not confirming recent price action.

Volatility Indicators (VIX, VVIX, OVX)
Volatility indicators such as the VIX and VVIX are a volatility measurement of the market and something that we monitor every day. The additional of a standard Bollinger Band indicator is very useful

VIX daily Chart Link

Volatility index daily chart, moves opposite to the SPX, view comments on the chart for guides. When plotted with Bollinger Bands a simple system is to observe when the VIX closes outside its upper Bollinger Bands and then closes back inside for a market buy signal, and the reverse when the VIX is trading outside its lower Bollinger Bands and then closes back inside, which would be a market sell signal

VVIX and VIX One Chart Chart Link

The VVIX measures the volatility of the VIX and is thus useful in conjunction with the VIX. Also just like the VIX, applying Bollinger Bands gives the same general buy and sell signals as the VIX when the VVIX is trading outside its Bollinger Bands and then closes back inside of them.

VVIX, VIX, NYMO, NYHL One Chart Chart Link

This is a very useful chart as it contains a bunch of these useful indicators all on one chart: The VIX, VVIX, NYMO, and NYHL with Bollinger Bands. Buy and sell signals are generated when these indicators are trading outside of their respective Bollinger Bands, and finally close back inside of them.

OVX Volatilty Index of Crude Oil

This is a neat indicator, like the VIX it's a volatility measurement but of crude oil. Just like the VIX, when plotted with a the Bollinger Bands, buy signals occur when the OVX is trading outside its upper Bollinger Bands and closes back inside. Sell signals occur when the OVX is trading below its lower Bollinger Bands and closes back inside. One can also look for divergences as warning signals that a trend reversal may occur.

NASI - Nasdaq McClellan Summation Index - 2 and 5 EMA plot/system

The NASI is a breadth indicator and when plotted as a 2 and 5 EMA, provides general buy and sell signals. One can also add a whipsaw confirmation to this to filter out some whipsaw, see examples on chart

NASI - Nasdaq McClellan Summation Index - Renko Bar plot/system

The NASI plotted as a 25 bar size renko plot with PSAR

NASI - Nasdaq McClellan Summation Index - Histogram plot

The NASI plotted as a histogram - gives an overall trend indicator when it's trending above or below zero

NASI - Nasdaq McClellan Summation Index -Plotted as Cumulative

The NASI plotted as a cumulative graph gives an overall larger trend direction. Divergences form as well where it will top out first or bottom first

NYMO - NYSE McClellan Oscillator - Plotted with Bollinger Bands

The NYMO NYSE McClellan Oscillator is a very useful indicator. When plotted with simple Bollinger Bands, take note when it closes below its lower Bollinger Bands. Typically good for pointing out situations where the market is due for at least a reversion to mean bounce or is short-term oversold. Typically the NYMO will close below its lower Bollinger bands for 1, 2, 3, and rarely 4 consecutive days; the more consecutive days, the more oversold and prone to a bounce the market is. 

You can also look for positive and negative divergence between the NYMO and the SPX to find areas where the market is bottoming or topping.

NYMO - NYSE McClellan Oscillator - Plotted as Histogram with Bollinger Bands

The NYMO NYSE McClellan Oscillator is a very useful indicator. Just like my description above, observe the action around the Bollinger Bands (closing above or below them), however this one is plotted as a histogram and also compares it to the S&P 500

NAMO - Nasdaq McClellan Oscillator - Plotted with Bollinger Bands

The NAMO Nasdaq McClellan Oscillator is a very useful indicator. When plotted with simple Bollinger Bands, take note when it closes below its lower Bollinger Bands. Typically good for pointing out situations where the market is due for at least a reversion to mean bounce or is short-term oversold. Typically the NAMO will close below its lower Bollinger bands for 1, 2, 3, and rarely 4 consecutive days; the more consecutive days, the more oversold and prone to a bounce the market is. 

You can also look for positive and negative divergence between the NAMO and the QQQ/SPX to find areas where the market is bottoming or topping.

NYMO and NAMO McClellan Oscillator for NYSE and Nasdaq - Plotted together as Histogram

This is a very useful all-in-one chart where I plot both the NYMO and NAMO indicators on the same chart as Histograms with Bollinger Bands. A very useful chart to where you can see at a glance if either one of these close below their lower Bollinger Bands

Dow Jones McClellan Oscillator with Bollinger Bands

Just like the NYMO and NAMO, oversold signals occur when the Dow McClellan Oscillator closes below its Bollinger Bands

Nasdaq 100 McClellan Oscillator with Bollinger Bands

Just like the NYMO and NAMO, oversold signals occur w

S&P 500 McClellan Oscillator with Bollinger Bands

Just like the NYMO and NAMO, oversold signals occur w

S&P 500 One Chart with multiple McClellan Oscillators, VVIX, and VIX with Bollinger Bands

This is a convenient chart it contains multiple McClellan Oscillators: NYMO, NAMO, SPX, NDX, and Dow McClellan Oscillators, along with VIX and VVIX, all plotted with Bollinger Bands on one chart. Look for closes outside the Bollinger Bands to see various overbought or oversold conditions. 

CPC Put/Call Ratio - plotted as Area Plot with Bollinger Bands and compare to SPX index

The CPC Put/Call ratio is the ratio of the total Put options dividend by Call options. Typically this is used as a gauge to measure short-term market sentiment. When the CPC is well below the 1 area, for example below 0.8 and less, it signals that there is very little fear in the market and to be cautious of a short-term pullback in the market. When the CPC spikes to levels over roughly 130 and higher, it signals short-term fear is getting to high and a reversion-to-mean bounce may occur at any moment. I also plot the CPCI with Bollinger Bands and typically when it spikes outside its upper Bollinger Bands, that is a good gauge that the market is short term oversold. 

CPC Put/Call Ratio - plotted with Bollinger Bands and compare to SPX index

The CPC Put/Call ratio is the ratio of the total Put options dividend by Call options. Typically this is used as a gauge to measure short-term market sentiment. When the CPC is well below the 1 area, for example below 0.8 and less, it signals that there is very little fear in the market and to be cautious of a short-term pullback in the market. When the CPC spikes to levels over roughly 130 and higher, it signals short-term fear is getting to high and a reversion-to-mean bounce may occur at any moment. I also plot the CPCI with Bollinger Bands and typically when it spikes outside its upper Bollinger Bands, that is a good gauge that the market is short term oversold. 

CPC Put/Call Ratio - plotted as a 5 EMA and 200 length Bollinger Bands

In this chart I plot the CPC as a 5 day EMA average, and apply a 200 length Bollinger Bands, instead of the standard 20 length. This is to be used for longer term oversold signals vs short-term like the standard CPC plot. Whenever the 5 EMA CPC closes outside its upper Bollinger Bands, typically occurs near major trade lows

Nasdaq 52 week highs, 52 week lows, and 52 week highs - lows differentia - plotted as Daily 

A very useful breadth indicator chart with the ability to give multiple levels of information:
1. The 52 week highs and lows are blog potted as histograms along with Bollinger Bands. When price closes outside of the upper Bollinger Bands, will give you a general oversold or overbought reading on the market. When the 52 week lows spike outside the upper Bollinger Bands, typically price is extremely oversold. When the 52 week highs spike outside the upper Bollinger Bands, price may be a bit overbought short-term, however it does not work as well as a sell signal as the 52 week lows do as a buy signal.
2. Subtracting the 52 week lows from the 52 week highs to get a difference is very useful and once again when this spikes outside of it's Bollinger Bands can give buy/sell signals. Furthermore in strong bear markets, this 'difference indicator) will typically stay below zero or only go slightly above it

Nasdaq 52 week highs, 52 week lows, and 52 week highs - lows differentia - plotted as Weekly 

The same chart as the daily but plotted on a weekly time frame

Nasdaq 52 week highs, 52 week lows, and 52 week highs - daily plot

Plots the Nasdaq as as a candlestick chart, along with the new 52 week highs and new 52 week lows plotted as histograms along with Bollinger Bands. When these indicators close outside their upper Bollinger Bands, it tells you when prices are either short term overbought or oversold. Also, look for divergences in price on the Nasdaq vs the 52 week highs and lows indicators: For example, if you see the market making a new low, but the 52 week highs indicator is forming a higher high than it did when the Nasdaq was at a higher price in the past, or the 52 week low indicator is making a lower high - this tells you that the market may be at a trade bottom.

S&P 500 52 week highs, 52 week lows, and 52 week highs - daily plot

Plots the S&P 500 as as a candlestick chart, along with the new 52 week highs and new 52 week lows plotted as histograms along with Bollinger Bands. When these indicators close outside their upper Bollinger Bands, it tells you when prices are either short term overbought or oversold. Also, look for divergences in price on the SPX vs the 52 week highs and lows indicator to signal major bottoms.

S&P 500 with NYSE 52 week highs, 52 week lows, and 52 week highs - daily plot

Plots the S&P 500 as as a candlestick chart, along with the NYSE new 52 week highs and new 52 week lows plotted as histograms along with Bollinger Bands. When these indicators close outside their upper Bollinger Bands, it tells you when prices are either short term overbought or oversold. Also, look for divergences in price on the SPX vs the 52 week highs and lows indicator to signal major bottoms.

NAHL Nasdaq New Highs-Lows DAILY - plotted as 10 day average long with % Stocks above 200 and 50 day MA's

The NAHL shows the Nasdaq new highs-lows along with the Nasdaq composite for comparison. In this example I'm showing the indicator plotted as the 5 day average to filter out some of the noise. Generally it's a good guide for overall market trend; observer when it's trending above zero (market up trending) and below zero (market down trending or in a bear market). You can also look for divergences such as positive divergence. I also include plots showing the percentage of stocks above their 200 day and 50 day moving averages. 

NAHL Nasdaq New Highs-Lows Weekly - plotted as 10 day average long with % Stocks above 200 and 50 day MA's

The same as the daily but plotted on a weekly time frame. Note that the percentage of stocks above the 200 day MA and 50 day MA, when these get oversold, tends to occur around major trend bottoms

NAHL Nasdaq New Highs-Lows Weekly zoomed out - plotted as 10 day average long with % Stocks above 200 and 50 day MA's

Another weekly version but zoomed out longer. Note that the percentage of stocks above the 200 day MA and 50 day MA, when these get oversold, tends to occur around major trend bottoms

NYAD, NYSE Advance/Decline Issues plotted as 10 day average vs S&P 500

The NYAD Advance/Decline Issues is a Breadth indicator. In this example I plot it as a 10 day average and compare it to the S&P 500 to look for areas of divergence between the two. 

NYAD, NYSE Advance/Decline Issues Cumulative Plot vs S&P 500 line chart

The NYAD Advance/Decline Issues is a Breadth indicator. In this example I plot it as a cumulative plot and compare it to the S&P 500. Generally the two will move together and confirm one another. Watch for divergences as warnings that a trend may be close to reversing. For example if the SPX is flat but the NYAD starts to rally strongly, it signals positive breadth underneath the surface and more than likely the market will soon follow; gives a nice early warning. The reverse is also true.
Also, look for divergences where one makes higher high high, while the other makes a higher low, or the reverse. 

NYAD, NYSE Advance/Decline Issues Cumulative Plot vs S&P 500 candlestick chart

The exact same thing as the other one, except in this one I plot the S&P 500 as a candlestick chart instead of a line chart

Comparison charts
Here's a list of charts where we compare various indexes and sectors to one another that normally follow one another, and look for divergences such as when one makes a higher high but the other makes a lower high and vice versa

QQQ vs QQQE (equal weighted) Chart Link

QQQ vs the Equal Weighted QQQ's.  The two ETF's are going to move together in most situations, however when you see divergences between the two, that is the time to take note:

SPX vs SPXE (equal weighted) Chart Link

SPX vs the Value Line Index.  The two ETF's are going to move together in most situations, however when you see divergences between the two, that is the time to take note:

SPX vs HYG Daily View Chart Link
SPX vs HYG Weekly View Chart Link

S$P 500 vs HYG High Yield Corporate Bonds.  These two tend to be correlated to one another, look for divergences between the two.

SPX vs XVG Value Line Chart Link

SPX vs the Value Line Index.  The two ETF's are going to move together in most situations, however when you see divergences between the two, that is the time to take note:

Dow Theory Chart Link

Dow Theory is an old concept, however it is still valid to note divergences between the Transport and the Dow, via the Tran/Dow Ratio plotted on the chart

SPX vs Chinese Market

This chart plots the SPX vs the Chinese Market CHN ETF. The two generally move together, however note periods of divergence between the two.

SPX vs EEM Emerging Markets

This chart plots the SPX vs the Chinese Market CHN ETF. The two generally move together, however note periods of divergence between the two.

Bullish Percent Charts
Bullish Percent charts are generated by the percentage of stocks in that index/sector that are on point and figure buy signals. Because the charts are based off a percentage, the lowest number is 0%, and the highest number is 100%, and rarely do bullish percent charts hit these extreme levels. Generally prices above 80% or below 20% are considered overbought and oversold levels respectively, however prices can stay elevated or depressed for periods of time, therefore you need a valid trigger, preferably on price action. You can look for things such as divergences and patterns, and sometimes plotting bullish percent charts as renko-style charts can give cleaner signals. 

BPENER, Energy Sector Bullish Percent Chart plotted as a line chart with 9 EMA and 20 SMA

This chart plots  the BPENER along with a 9 EMA and a 20 SMA - general crossovers of the 20 SMA from oversold or overbought conditions produce buy and sell signals

BPENER, Energy Sector Bulllish Percent Chart plotted as a 1 point box renko chart

This chart plots the BPSPX as a 1.0 renko box size along with the PSAR indicator.

BPGDM, Gold Miners Bullish Percent Chart plotted as a 1 point box renko chart

This chart plots the BPGDM as a 1.0 renko box size along with the PSAR indicator. Observe the overall price level of the BPGDM (is it oversold or very overbought), and you can use the PSAR buy/sell signals as a clean signaling system. Also look for divergences in the indicator as early signs of topping or bottoming action.

BPGDM, Gold Miners Bullish Percent Chart plotted as a line with 8 SMA, and GDX/GLD ratio

This chart plots the BPGDM as a line chart along with the 8 SMA to be used as a general crossover system. Also observer the price levels of the BPGDM (is it very oversold or overbought), and look for divergences as early warnings that the trend may reverse.
I also plot the GDX/GLD ratio and I suggest drawing trendlines on this to use as a guide as the stocks lead the metal

BPSPX, S&P 500 Bullish Percent Chart plotted as area chart with 8 and 20 SMA

This chart plots the BPSPX as an area chart along with the 8 and 20 SMA's. First off note the general level of the BPSPX i.e. is it in an overbought or oversold area. Next, you can use the MA's as a guide, and typically crosses over the 20 MA produce trending moves.
Also be on the lookout for divergences between the BPSPX and the SPX.

BPSPX, S&P 500 Bullish Percent Chart plotted as line compared to SPX Index

This chart plots the BPSPX as a line chart and compares it to the SPX to look for divergences between the two and for general overbought/oversold readings

BPSPX, S&P 500 Bullish Percent Chart plotted as a 1 point box renko chart

This chart plots the BPSPX as a 1.0 renko box size. 

BPFINA, S&P Financial Sector Bullish Percent Chart plotted as a 1 point box renko chart

This chart plots the BPSPX as a 1.0 renko box size. 

BPFINA, S&P Financials Sector Bullish Percent Chart plotted as a 1.75 point Renko chart with PSAR

This chart plots the BPFINA, Bullish Percent of the S&P Finacials sector. I'm using a 2.0 box size but suggest trying other sizes to see what looks best with current market conditions. The PSAR gives an overall clean buy and sell signal. Also note the overall level of the BPFINA such as is it at overbought levels above 75% or oversold levels below 20%

BPFINA, S&P Financial Sector Bullish Percent Chart area plot and 8 MA, 20 SMA

This chart plots the BPSPX as an area chart plotted with the 8 and 20 SMA's. 

BPINDY, S&P Industrials Bullish Percent Chart plotted as a 1.5 Renko chart with PSAR

This chart plots the BPINDY, Bullish Percent of the S&P Industrials. I'm using a 1.5 box size but suggest trying other sizes to see what looks best with current market conditions. The PSAR gives an overall clean buy and sell signal. Also note the overall level of the BPINDY such as is it at overbought levels above 75% or oversold levels below 20%

BPREAL, S&P Real Estate Bullish Percent Chart plotted as a 1.25 Renko chart with PSAR

This chart plots the BPREAL, Bullish Percent of the S&P Real Estate sector. I'm using a 1.25 box size but suggest trying other sizes to see what looks best with current market conditions. The PSAR gives an overall clean buy and sell signal. Also note the overall level of the BPREAL such as is it at overbought levels above 75% or oversold levels below 20%

BPSTAP, S&P Consumer Staples Bullish Percent Chart plotted as a 1.25 Renko chart with PSAR

This chart plots the BPSTAP, Bullish Percent of the S&P Consumer Staples sector. I'm using a 1.25 box size but I suggest trying others to see what looks good for if the market has changed. The PSAR gives an overall clean buy and sell signal. Also note the overall level of the BPSTAPL such as is it at overbought levels above 75% or oversold levels below 20%

BPUTIL, S&P Utilities Sector Bullish Percent Chart plotted as a 2.0 Renko chart with PSAR

This chart plots the BPUTIL, Bullish Percent of the S&P Utilities sector. I'm using a 2.0 box size but suggest trying other sizes to see what looks best with current market conditions. The PSAR gives an overall clean buy and sell signal. Also note the overall level of the BPUTIL such as is it at overbought levels above 75% or oversold levels below 20%

. NAHL Nasdaq New Highs/Lows Cumulative Chart Link

Cumulative chart plot of the NAHL new highs/low, this chart is useful for noting larger market trends and when it falls below the 50 EMA is a longer term cautionary note.  Please note that it lags and many times the market will be very oversold when this indicator falls below the 50 EMA, therefore this indicator should never be used alone

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