5/29/2010
Current Status of the LWX (Leading Wave Index)
The LWX in Last Four Weeks (Past)
The LWX in Next Four Weeks (Forecast)
The Broad Market Volatility is below the Panic Threshold
The BIX (Broad Market Volatility) closed at 25 on Friday and it is below the panic threshold level of 47. The volatility level of 25 indicates that the current market is bullish.
The market in a 7-month broadening triangle pattern
The Dow Jones Wilshire 5000 (DWC) is in a 7-month broadening triangle pattern. The market was in a period of very volatile storms in May. The first powerful storm of the volatility with the a sharp drop of the market in the first week of May acted like the front eyewall of a hurricane. The rebonce in the second week of May acted like the eye of a hurricane that looked like the storm was over. The second powerful storm of the volatility in the third and forth week acted like the back eyewall of a hurricane. Now the market could be near the end of this storm period to complete the correction of May. Currently the market is in the choppy zone of the formation. Set guards at the both boundary of the formation for trading mode change. The colors on the price bars represent the status of the LWX (Leading Wave Index).
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Trend indicator: down
Momentum indicator: negatve
Sector Ranking
The following table is the percentage change of sectors and major market indexes against the 89-day exponential moving average (EMA89). The Dow Jones Wilshire 5000, as an average or a benchmark of the total market, is down 3.71%. Outperforming sectors are Precious Metals (up 1.92%), Real Estate (up 1.44%), and Consumer Services (down 0.34%). Underperforming sectors are Biotech (down 8.50%), Energy (down 7.52%), and Pharmaceuticals (down 6.91%). The Russell 2000 small-cap (down 1.25%) is outperforming the market, and the S&P 500 (down 4.25%) is underperforming.
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