The Silver Cross Index measures the number of stocks that have a 20-day EMA above the 50-day EMA, or they are on a “Silver Cross” IT Trend Model BUY Signal. This gives us a more complete picture than simply measuring the number of stocks above their key moving averages.
Yesterday, on Consumer Discretionary (XLY) the Silver Cross Index moved above its signal line. This gives us a new IT BULLISH Bias on the sector. This is a sector to watch. With the release of a positive retail sales report, this sector is likely to see even more upside.
Price has broken above both the 20/50-day EMAs. Participation is shooting up and given the percentage of stocks above their 50-day EMA is higher than the Silver Cross Index, it should continue to rise higher. It is coming out of oversold territory. Stochastics are rising and relative strength is turning up. There is plenty of room for more upside.
Conclusion: The Consumer Discretionary (XLY) sector is showing signs of renewal and based on recent retail sales data, it should continue to see more upside. This sector is likely to continue to lead the market higher now that we have a BULLISH IT Bias in the SP500 and now a BULLISH Bias in the intermediate term for XLY.
Introducing the new Scan Alert System!
Delivered to your email box at the end of the market day. You’ll get the results of our proprietary scans that Erin uses to pick her “Diamonds in the Rough” for the DecisionPoint Diamonds Report. Get all of the results and see which ones you like best! Only $29/month! Use our free trial to try it out for two weeks using coupon code: DPTRIAL2 OR purchase now and get one month for free! Sale ends August 31st. Click HERE to subscribe!
Buy One Month, Get One Month Free
Buy one month of ANY DecisionPoint subscription and get one month for free! This sale ends August 31st so act now! Click HERE to subscribe!
Learn more about DecisionPoint.com:
Watch the latest episode of the DecisionPointTrading Room on DP’s YouTube channel here!
Try us out for two weeks with a trial subscription!
Use coupon code: DPTRIAL2 at checkout!
Click HERE to subscribe Now!
Technical Analysis is a windsock, not a crystal ball. –Carl Swenlin
(c) Copyright 2024 DecisionPoint.com
Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
DecisionPoint is not a registered investment advisor. Investment and trading decisions are solely your responsibility. DecisionPoint newsletters, blogs or website materials should NOT be interpreted as a recommendation or solicitation to buy or sell any security or to take any specific action.
Helpful DecisionPoint Links:
Trend Models
Price Momentum Oscillator (PMO)
On Balance Volume
Swenlin Trading Oscillators (STO-B and STO-V)
ITBM and ITVM
SCTR Ranking
Bear Market Rules