Short Term Indicators

NYSE (OTC) Percent of Stocks Above Their 10 Week Moving Average: Charted on the same type of grid as the bullish percents. Buy signals are given when the index goes below 30% and reverses up, as well as when a column of Xs exceeds a previous column of Xs. Sell signals are given when the index goes above 70% and reverses down, as well as when a column of Os exceeds a previous column of Os.

NYSE (OTC) High-Low Index:

This index measures the number of new highs made on the NYSE divided by the number of new highs plus new lows. This number is then recorded on a ten day moving average. The ten day moving average is then plotted on a grid from 0% to 100%. We look at the Percent of Stocks Above their 10 Week Moving Average and the NYSE High-Low Index in conjunction with one another. Buy signals are given when the index goes below 30% and reverses up, as well as when a column of Xs exceeds a previous column of Xs. Sell signals are given when the index goes above 70% and reverses down, as well as when a column of Os exceeds a previous column of Os.

When looking at the short term indicators, we like to see both moving in the same direction to make a short term evaluation of the market. These two short term indicators are also applied to the Nasdaq or OTC market.