When using the RSI, readings between 20-60 are associated with downtrending charts and 40-80 are uptrending. The Vix has recently undergone a complete character change throughout the month of May. It’s also finding support at certain moving averages and it’s ability to stay above it’s 200ma is a good sign for the bears.

vix

This is a chart I wanted to point out how you can use the indicator $NAA200R, which is the percentage of stocks above the 200ma on the Nasdaq. Notice how it topped out and started decline months in advance as the Nasdaq continue to make new yearly highs. Right now it’s not giving any clear divergences as to the future direction of the market, so we have to look for other clues.

nasd

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One Response to “Sentiment Charts”

  1. Jack Damn Says:

    Great chart work. Thanks for the post.

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