This is a daily chart of SPX to note.
- The top indicator is the full stochastic. It acts as the trigger.
- The middle indicator foretells of bottoms. When it is very elevated and then drops (both conditions must be present) then it is predicting a bottom. You will buy when it tells you a bottom is reached *and* the stochastic is conducive to a buy (again both conditions must be present). Signal peak dates are Sept 20, Sept 30, Dec 3rd, and Jan 27.
- The 3rd and last indicator is a foretells of tops. Just like the previous one, when it spikes, it means a top is near, but you have to wait for the stochastic for the timing. The signal spikes are: Aug 16, Sept 2nd, 26 Oct/Nov 2nd (negated by stochastic and chart pattern), Nov 8, Nov 19, Dec 28 (wait for the stochastic), Jan 3rd (confirms the previous signal and stochastic is in place). The last spike on Feb 7 is too weak to matter.
You can examine this chart history and see how these indicators work together.
Right now we have highly elevated bottoming signal. Whe is needed is (1) for it to drop so it marks a spike (think of it as being like Q's pink firing arrow) and (2) the stochastic or chart pattern needs to get in position.
From the look of the chart, it seems ready to make a bottom. This is evident in both the chart itself and the pattern of the indicators. The market is primed for a rally, but if the conflict expands, then it won't trigger. Regardless, a number of my indicators say we are bottoming (at least temporarily) and just need to get the stochastic in place.
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