Broad Market Indictors

Weekly Stock Market Indicators Explained

The Weekly Market updates on this site are based on Stan Weinstein’s book “Secrets for Profiting in Bull and Bear Markets” which takes a long view on the market. Indicators are based on weekly data to provide a macro view of the market.

Indicators 1 – 3: Indexes vs. 30 Week MA

Major indexes weekly close in comparison to the 30 week moving average. A positive signal is when the close is above the 30 week moving average line.

The links below bring you to Stockcharts.com and show a weekly performance of the stock in comparison to its 30 week moving average.

1. DOW
2. S&P
3. Nasdaq 

Indicator 4: NYSE A-D and Dow Convergence/Divergence

NYSE Advance-Decline vs. Dow (DJIA). Bull when both are moving up. Bear when Dow goes up and the NYSE goes down, or when both go down. Stockcharts Liink

Indicator 5: NYSE A-D 200 Day MA

Look at the NYSE Advance-Decline’s 200 days moving average to see if it is above (bull) or below (bear).  Example illustrated with this Stockcharts link. 

Indicator 6: NYSE 52 week Highs vs. Lows.

See if there are more stocks hitting their 52 week highs or 52 week lows. I chart this one myself using and also look at stockcharts.  Stockcharts has a nice article explaining the chart.

Indicator 7: NYSE 52 Week High Low vs. Dow Convergence/Divergence

Compare the weekly NYSE 52 High Low to the Dow Close to see if they are both moving up or down.

Indicator 8: International Markets

Look at the Global Dow (GDOW) to see if it is above or below its 30 Week MA.

Indicator 9: Dow Price to Dividend Ratio

What does it cost to buy a dollar’s worth of a dividend on the Dow? Apply the current Dow dividend yield into the closing price to obtain the percentage. Use this as your guide. 

Price/ Dividend Ratio	Resulting Interpretation
14 to 17	Bargain
26 to 29	Dangerous
Above 29	Extremely Overvalued

Barron’s has the data at this link.

Indicator 10: Pickles' Gold ETF vs. Dow

A comparison of the performance of the DOW vs. Gold can be interesting. Both are considered safety. What happens though when the member's of the DOW are hit by hard times? I like to see when they cross. Stockcharts linke here.