Thursday, May 26, 2016
My TA Take
My market proxy is the Value Line Arithmetic Index. When I want to look at long term trends I like to compare that Index to the 20, 50 and 100 week moving averages and the 14 week turtle channel.
As you can see not only is the Value Line Arithmetic Index above all its weekly moving averages but the 14 week turtle channel is showing that a bottom was reached with a double bounce in January and February and has had steady upward momentum since then.
I realize that the economy and the stock market are not the same but in the long run they do eventually run in the same direction. The Conference Board's Leading Economic Indicators are still rising. LINK to LEI Report
When both the stock market and the Leading Economic Indicators are running in the same direction I follow their lead.