A.I.M. Users Bulletin Board

[SFSecurity]

Hi Toofuzzy, I'm not sure what you are referring to. I was talking about what an "expert" said was an indicator for market top, 10 period simple moving average. What he says is that when the 10 SMA closes below the monthly close that is one of three indicators of market top being hit.

All moving averages, both SMA and EMA, depend on the chart one is looking at, daily, weekly or monthly. So a 10 SMA on a monthly chart is the average of the last 10 months compared to the closing of the month being looked at.

In my very brief looking at the possible indicators of the market bottom it appears that this approach does not work. I tried 4, 6, 8, 10, and 12 SMA and the 4 was closest, taking 9 months after the bottom for SPY to close above the SMA.

Oh, well, I'll keep looking.

Best,

Allen