BarChart Stock Market Momentum Indicators W/E 8/28/09 CODE GREEN

At the end of each week I look to BarChart to test the Tides and see which way the Tide is flowing. This week the tides seems to be flowing in an rising trend so there is still a CODE GREEN meaning that it looks like a good time to be in the Stock Market.

Let's take the 3 indicators I follow and see what they say;

Value Line Index - This is an arithmetic index of the 1700 largest stock followed by Value Line. These 1700 stock make up over 95% of entire US stock market capitalization.

BarChart's Opinion is very postive on the Index and gives it a 96% Buy signal

Is the Index trending above it's Daily Moving Averages:

1. 20 DMA Above
2. 50 DMA Above
3. 100 DMA Above

All 3 look good

Next I check the BarChart Market Momentum page to see how many stocks are trading above their Daily Moving Average:

1. 20 DMA - 66% are trading above
2. 50 DMA - 83% are trading above
3. 100 DMA - 87% are tradign above

This is a very good sign

Next I see that the ratio of stocks trading at new highs to new low for 3 time periods:

1. 20 day - 1200 highs/316 lows = 3.8 positive ratio
2. 65 day - 980 highs/111 lows = 8.83 positve ratio
3. 100 day - 916 highs/72 lows = 12.72 positive ratio

All 3 periods have many more new highs than new lows - a very positive sign

Since there don't appear to be any mixed signals in my 3 indicators I'm going to continue my CODE GREEN; It's OK to invest in the market and stay fully invested in your 401K