Daily Breadth Summation Index (BSI)

The Daily BSI (Breadth Summation Index) is made up of a dozen of Breadth and Momentum indicators and is a good measure of oversold and overbought conditions. It is interpreted as Bullish when turning up from low levels since we can climb significantly before reaching overbought, and Bearish when it turns negative by crossing the zero line. It shows the potential risk/reward on a trade depending on its position relative to recent history, but it is more volatile than the Weekly BSI and best used coupled with other analysis as done for subscribers.

Tick ratios of trades The Tick ratios are very volatile, but their moving averages do indicate whether a trend is bought into on an Up Tick or sold into on a Down Tick. Periods of high Ticks are followed by periods of low Ticks, and this over many time periods, from hours to days. Good short term turning points occur when the Ticks gets very low together , but high Tick values are not as precise in marking short term highs.

The Put/Call ratios The Put/Call ratio is very well known and can be very precise at marking lows and highs at times, but can lead or lag considerably at other times and is best used as a warning that a trend is becoming too popular and due for a pause and/or reversal.

Price Momentum indicators Price matters most, and the acceleration in Price momentum seen in a sharply rising or declining PPO (Price Percent Oscillator) and StochRSI is not to be ignored for very long, since losses can mount quickly when on the wrong side. These indicators measure price acceleration and only turn bearish once they cross below the zero or 50% line and turn negative.

Click here for a Printable version of this Chart

Charts courtesy of StockCharts.com

New Highs and Lows with their ratio and moving averages

---

The New Highs and Lows and their moving averages are good indicators of the current trend and the ratio of Nasdaq New Highs / Lows ratio can help detect extreme readings and potentially good turns.

Click here for a Printable version of this Chart

Charts courtesy of StockCharts.com

Up and Down Volume with their ratio and moving averages

---

The Up and especially Down Volume and their moving averages are good indicators of the current trend and the ratio of Nasdaq Up / Down Volume ratio can help detect trend changes and potentially good turns when readings are extreme.

Click here for a Printable version of this Chart

Charts courtesy of StockCharts.com

The Advancing/Declining ratio The Advance / Decline line is part of the calculation for the Trin and normally alternates between days of buying and selling, but extended periods of only buying or selling are a sign of exhaustion and a warning that the trend should pause and/or reverse soon.

The 5 day Trin The Trin or Arms indexes are good measures of overbought and oversold conditions and can be quite accurate at marking lows and highs at times, but can lead or lag considerably at other times and are less useful for very short term trading.

The 40 day Trin The 40 day Trin is useful for detecting longer trends in accumulation and distribution, and often behaves in an obvious Elliot Wave fashion that can give early warnings since it oftens lead price changes by a week or so.

Click here for a Printable version of this Chart

Charts courtesy of StockCharts.com

The Volatility Indexes

---

The Volatility indexes are also good measures of sentiment and can be very precise at marking spike lows and highs at times, but can lead or lag considerably at other times and are less useful for very short term trading. The ratio of the Nasdaq QQV to the SPX VIX can be used to detect exremes of risk taking as shown by the top red line, and the blue SPX relative to VIX line is best used for confirmation and/or divergences.

Click here for a Printable version of this Chart

Charts courtesy of StockCharts.com