One of many indicators that Carl Swenlin developed is the Silver Cross Index. It is without doubt one of the finest participation indicators on the market! This is the way it works:
We think about a constructive 20/50-day EMA crossover a “Silver Cross”. If a inventory has a Silver Cross it has a bullish bias. The other of a Silver Cross is a Darkish Cross. Shares with a Darkish Cross have a bearish bias.
The Silver Cross Index measures the share of shares holding Silver Crosses. The present proportion on the Silver Cross Index is simply 37% so this tells us that 63% have bearish biases. This situation suggests to us that the market has extra draw back to soak up.
The Silver Cross Index was nearing a Bullish Shift throughout its sign line, however as a substitute has topped. It’s prone to proceed declining given much less shares are above their 20/50-day EMAs versus the Silver Cross Index proportion.
Participation measured by the p.c of shares above their key shifting averages are all beneath our bullish 50% threshold. Stochastics have topped and the PMO topped Friday. The short-term rising pattern has been damaged. This seems like a textbook reverse flag formation that was confirmed with Friday’s decline. The minimal draw back goal of the sample would put worth close to 480. This certain has the earmarks of a failed bear market rally.
Conclusion: The Silver Cross Index is at a really low 37% and has now topped beneath its sign line. Participation, as measured by the %Shares > 20/50EMAs, is mediocre at finest and studying beneath the Silver Cross Index. This seems like the tip of a bear market rally primarily based on the bear flag that was confirmed on Friday.
(Observe: This chart is from our “Underneath the Hood” ChartList on DecisionPoint.com. Now we have these charts with the Silver Cross Index for all the most important indexes, sectors and choose trade teams. All subscriptions embrace entry to those charts!)
The DP Alert: Your First Cease to a Nice Commerce!
Earlier than you commerce any inventory or ETF, it’s essential know the pattern and situation of the market. The DP Alert provides you all it’s essential know with an government abstract of the market’s present pattern and situation. It not solely covers the market! We have a look at Bitcoin, Yields, Bonds, Gold, the Greenback, Gold Miners and Crude Oil! Solely $50/month! Or, use our free trial to strive it out for 2 weeks utilizing coupon code: DPTRIAL2. Click on HERE to subscribe NOW!
Study extra about DecisionPoint.com:
Watch the newest episode of the DecisionPointBuying and selling Room on DP’s YouTube channel right here!
Attempt us out for 2 weeks with a trial subscription!
Use coupon code: DPTRIAL2 Subscribe HERE!
Technical Evaluation is a windsock, not a crystal ball. –Carl Swenlin
(c) Copyright 2025 DecisionPoint.com
Disclaimer: This weblog is for academic functions solely and shouldn’t be construed as monetary recommendation. The concepts and methods ought to by no means be used with out first assessing your personal private and monetary scenario, or with out consulting a monetary skilled. Any opinions expressed herein are solely these of the creator, and don’t in any means signify the views or opinions of another particular person or entity.
DecisionPoint isn’t a registered funding advisor. Funding and buying and selling choices are solely your accountability. DecisionPoint newsletters, blogs or web site supplies ought to NOT be interpreted as a advice or solicitation to purchase or promote any safety or to take any particular motion.
Useful DecisionPoint Hyperlinks:
Worth Momentum Oscillator (PMO)
Swenlin Buying and selling Oscillators (STO-B and STO-V)
Erin Swenlin is a co-founder of the DecisionPoint.com web site alongside along with her father, Carl Swenlin. She launched the DecisionPoint every day weblog in 2009 alongside Carl and now serves as a consulting technical analyst and weblog contributor at StockCharts.com. Erin is an energetic Member of the CMT Affiliation. She holds a Grasp’s diploma in Info Useful resource Administration from the Air Pressure Institute of Expertise in addition to a Bachelor’s diploma in Arithmetic from the College of Southern California.
