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7/31/2010

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 17 on Friday and it is below the panic threshold level of 47. The volatility level of 17 indicates that the current market is bullish.
 
 
Market is forming a rising wedge
The Dow Jones Wilshire 5000 (DWC) is forming a short-term 4-week rising wedge (between tow blue lines).  Currently the market is in the choppy zone of the wedge, and it is testing the 89-day moving average (the white dotted line). The colors on the price bars represent the status of the LWX (Leading Wave Index).
 —————————————————————————————————————————————–
Trend indicator: down
Momentum indicator: negative
 
 
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 0.08%. Outperforming sectors are Real Estate (up 4.47%), telecommunication (up 3.75%), and Materials (up 2.22%). Underperforming sectors are Health Care (down 3.36%), Semiconductors (down 2.80%), and Banks (down 2.71%). The Dow Jones 30 (up 1.04%) is outperforming the market, and the S&P 500 (down 0.22%) is underperforming.  
 
 
The Chinese Market
The following chart is a weekly chart of the Shanghai Stock Exchange Composite Index. Since the bearish dead cross in the early of this year, the Chinese market has been in a downtrend by staying under the 17-week moving average (equivalent to 89-day moving average). It is currently in a 12-month downtrend channel (between two blue lines), and in the choppy zone of the channel between 2250 and 3000. However, if the index crosses over both of the 17-week moving average and the pink dotted median line of the 12-month downtrend channel around 2650 marked by a red circle, it should be characterized as a potential bullish golden cross. Currently the index is going to test the 17-week moving average.

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