S&P500 Short Term Market Breadth Analog Forecast Starting Feb 22, 2016

By Lawrence

Review of Forecast for Feb 15, 2016


Up swing of more than 2.5% as expected. Extreme volatility warning materialized as S&P500 breaking all nearby intraday resistance levels. The breadth analog model did an excellent job for the week.

Forecast Starting Feb 22, 2016


Summary of the S&P500 short-term forecast based on my proprietary market breadth analog model as of the close of Feb 19, 2016:
  • Potential swing top in the making
  • Extreme volatility warning
  • Exact turning point has to be identified with real-time breadth due to the high level of volatility

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Report Snapshot


breadth_forecast_20160219

Short Explanation About The Model


My market breadth based analog model takes into account the short term volatility, daily market breadth readings and a few other intraday breadth data to identify the current market conditions. Using the information, the model then went through the historical data over the past 20 years to generate its statistical analysis. The model has been pretty good at identifying important swing tops and bottoms over the past few years by providing early warnings about potential volatility upticks.

For the technical explanation of the concept, you can read about it here, Market Breadth Primer: Market Breadth Analog Forecasting Method

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