We publish this table daily to give an overview of the market, sector, and industry group indexes we follow. The Intermediate-Term Trend Model (ITTM) BUY Signals occur when the 20-day EMA crosses up through the 50-day EMA (Silver Cross). Long-Term Trend Model (LTTM) BUY Signals occur when the 50-day EMA crosses up through the 200-day EMA (Golden Cross).
Obviously, the intermediate-term status is excellent, with all but the Energy Sector on ITTM BUY Signals.
Let’s take a look at the Energy Sector chart. Energy has been in a down trend since the September top, and it has held little promise until today, when commodities in general, and crude oil in particular, had solid rallies. It is a little early to declare victory for Energy, but its a good start.
Digging deeper into the technicals, we note that the Silver Cross Index (the percent of XLE components that have their 20EMA above their 50EMA) is very depressed and is due a turn around. The Golden Cross Index (the percent of XLE components that have their 50EMA above their 200EMA) is still very strong, and should underwrite intermediate-term improvement.
Conclusion: While Energy has been poor for the last few months, it appears that rapid improvement is about to take place.
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Carl Swenlin is a veteran technical analyst who has been actively engaged in market analysis since 1981. A pioneer in the creation of online technical resources, he was president and founder of DecisionPoint.com, one of the premier market timing and technical analysis websites on the web. DecisionPoint specializes in stock market indicators and charting. Since DecisionPoint merged with StockCharts.com in 2013, Carl has served a consulting technical analyst and blog contributor.
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