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a simple chart to tell you whats going on in the "market", and etf or a stock
I don't know how to attach a picture of this chart so I have to describe it in words. In reading some of the recent discussions in the blogs on stockcharts I find a lot of confusion and conflict on where the "market" is currently. The chart is called the 50 day ema chart of $SPX with a 3 yr time span, price opacity is set to 0, and Force 13 is placed behind price. Nothing else is on the chart. Create this chart on your computer and you will see that $SPX is in an uptrend until July 2015 when it peaks. A "correction" then occurs ending in a trough. The trough is then followed by the formation of a lower peak and a lower trough which signifies a "trend change". $SPX is now in a downtrend. This is followed by a "counter trend rally". So the current state of the "market" or $SPX is a downtrend with a counter trend rally. If you substitute $ NYA(NYSE composite index) for $SPX you see the same thing.
The 50 day ema chart with 3 yr time span clearly tells you the trend, identifies any correction and any counter trend rallies. Theres been talk about a "new bull market" etc. This is nonsense. We are in a downtrend with a counter trend rally. The 50 day ema would have to exceed the peak of the 50 day ema in Dec. 2015 and then form a higher trough for a trend change to occur.
I would appreciate any comments and thoughts on the value of this type chart for simply identifying whats going on in the "market" or in a trade.