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Yesterday's Market Buy Signal

By Chris Rowe March 13, 2015 Facebook Logo Twitter Logo Email Logo LinkedIn Logo

** Note that my RSI buy signal is based on my specific RSI settings.  I did use the default settings for most charting services (14, 70, 30) but I'm using an "exponential RSI" which is more sensitive to the more recent activity.  Thus, if you look at a chart with a traditional RSI which is RSI wilder or RSI simple then you may not see the buy signal yet.

Dear Rowe Wealth Reader,

Just a quick note that the S&P 500 has put in a relative strength buy signal.  Does this mean the stock market will be higher in 6 months?  I wish I knew.  But this buy signal is seen at the same time that the market is at its uptrend line.

If we don't buy now then when do we buy?  Maybe we see lower prices.  We can't tell the future.  But we know when we see high probability.  (Scroll down).

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THE "TRUE MARKET"

The NYSE BPI is in Xs, on a buy signal and nowhere near overbought territory.

The stock market internal indicators "reset" in October. When we draw the trend line from that low to the next most recent low, in late January, we have a support level coinciding with a buy signal.

We are very excited about the activity in the models we have our clients invested in.  This is just a quick heads up that the signal will be officially triggered in 45 minutes when the U.S. equity market closes.

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