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zerohedge.com / Via Dana Lyons’ Tumblr / 12/19/2015 12:40 -0500
At this moment, an index that tracks the average stock move is testing the uptrend since 2009.
We talk often about the Value Line Geometric Composite (VLG). To refresh, the VLG is an unweighted index of about 1700 stocks that essentially tracks what the median stock in the market is doing. As such, we believe it is the truest measure of the health of the broad market. Most recently (on Monday), we noted that the VLG was testing what we have called a “pass/fail” level on its chart. That is, the response of the VLG at this level may tell us a lot about whether the next big move in the market is up or down. It may even, arguably, dictate the fate of the post-2009 cyclical bull market for the broad market of stocks. The VLG passed the test on September 29. We’ll see if it can pass it again here.
Well, the VLG has a sister index called the Value Line Arithmetic Index (VLA). What the VLA does is track the average move of the same ~1700 stocks. So it is similar to the VLG but can be more heavily influenced by big movers. Like the VLG, the Value Line Arithmetic Index is testing a key price level as well. Specifically, it closed today right at the Up trendline extending from the 2009 low.
The post On “Average”, Stocks Are Testing The Post-2009 Uptrend appeared first on Silver For The People.