Price Time Volume Investing

I have mentioned several times that my favorite index to measure the “market” (and possibly the “economy”) is the ValueLine Arithmetic Index. Another similar index is the SP500 Equal Weighted Index (SPX-EW). This index tracks the SP500 using equal shares of all companies in the index decreasing the chance that a few of the largest companies can skew the index while the majority of smaller companies stocks move in the opposite direction.

The following charts use trading days versus calendar days. I normally use calendar days but watching the trading day counts can be useful. The charts were created around noon on Friday so they do not show the closing prices.

The SPX-EW range of the bear market from 2007-2009 is bouncing above the 1×1 angle and is in a slightly stronger position than the regular SP500 index.

A move often makes the first segment above the final trend line and the completion segment from below. The Gann fan on the swing chart shows price topped out and has been below the 1×1 angle since June. Assuming this phenomena will occur this time, a 20% move would put price 50% above the initial range and near the 1×1 angle again. I am watching that area as a potential high

The trading day square of 90 shows price breaking out right on time. The 2×1 angle at 30 additional trading days may point to the high price as defined above.

Related Posts

• Weekend Outlook – 18Oct09 (October 18, 2009)
• Swing Chart Update (October 16, 2009)
• Gann Squares of 52 and 9 on the Nasdaq 100 (October 7, 2009)
• Treasury Bonds Swing Down on Charts (October 6, 2009)
• US Dollar Downtrend Remains Intact (September 30, 2009)

Tags:   Gann Square · Swing ChartsNo Comments