Market Strength: 9/10 ($SPX)

• Charles Amadeus
• October 10th, 2009

“WTF?!?” you say.

Your eyes glaze at the sight of red green speckles.

“$NYSI$BPSPX$VIXwha?”

Hypnotic lines blur your vision.

You read the blurb.

The charts plot the trend, breath & volatility of the S&P 500.

Each chart has a point value determined by  change and trend.

The cumulative score is a gauge of market strength.

You pause, unsure what it means.

Currently the Market Strength is 9/10, a strong reading. The missing point is due to the downtrend in the NYSE Summation Index ($NYSI), but since it rose +9.18, it contributes one of two possible points. Another eight points come from the McClellan Oscillator ($NYMO), Bullidex ($BPSPX:$VIX) et al., as they trend up and close higher.

The high reading is bullish as it implies a positive price trend with increasing breadth and falling volatility.