S&P500 Short Term Market Breadth Analog Forecast Starting Nov 16, 2015

By Lawrence

Review of Forecast for Nov 9, 2015


Sharp pullback with intraday volatility picking up as forecasted. The projected 5% pullback still in progress. The breadth analog model did an excellent job last week.

Forecast Starting Nov 16, 2015


Summary of the S&P500 short-term forecast based on my proprietary market breadth analog model as of the close of Nov 13, 2015:
  • 5% pullback can develop into 8% if a bounce of 1.5% is not registered this week
  • Volatility is expected to continue to increase
  • Once 1.5% drop is in place continuation down to 2.5% is likely

Report Snapshot


breadth_forecast_20151113

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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