Market Rallies Getting Weaker and Weaker

This is a commentary on the SP 500 index and the broader NYSE index. As I often mention here for Partners, we try to work in probabilities and then plan accordingly with our investing and trading. I look at Elliott Waves, Fibonacci levels, oversold and overbought patterns, cycles, and other indicators to give me some clues. Today, we look at an indicator called The Force Index. The Force Index: Developed by Dr Alexander Elder, the Force index combines price movements and volume to measure the strength of bulls and bears in the market. The raw index is rather erratic and better results are achieved by smoothing with a 2-day or 13-day exponential moving average (EMA). [LIST] [*]The higher the positive reading on the Force index, the stronger is the bulls’ power. [*]Deep negative values signal that the bears are very strong. [*]If Force index flattens out it indicates that either (a) volumes are falling or (b) large volumes have failed to significantly m...