Market Trend Indicator (MTI) Composite Model

Paul Gire

These charts represent the 21 indicators that make up the Market Trend Indicator (MTI). The purpose of this indicator is to provide actionable buy and sell signals for investors using the S&P 500. The primary objective is to avoid the periodic bear market declines that can be devastating to ones wealth. Though a number of the indicators are themselves short-term, the model is optimized to reduce the number of trades, though of course, trendless and fast moving markets environments will tend to increase the number of trades.

Market commentary is provided in the first chart and a summary of recent MTI signals can be found in the second chart. The charts that follow are for each of the individual indicators that make up the Composite.

3.18 - !AAIIBEAR - Weekly #2

Sentiment Indicator: This index tracks the American Association of Individual Investors (AAII) percentage of bears.

3.20 - !NAAIM - Weekly

Sentiment Indicator: This index tracks the National Association of Active Investment Manager (NAAIM) percentage allocation to equities.

3.22 - !NAAIM - Monthly

Sentiment Indicator: This index tracks the National Association of Active Investment Manager (NAAIM) percentage allocation to equities.

3.24 - $CPC - Weekly

Sentiment Indicator: The Put/Call Ratio is an indicator that shows put volume relative to call volume. Put options are used to hedge against market weakness or bet on a decline. Call options are used to hedge against market strength or bet on advance.

This indicator is used to gauge market sentiment. Sentiment is deemed excessively bearish when the Put/Call Ratio is trading at relatively high levels, and excessively bullish when at relatively low levels.

3.24 - $CPC - Weekly Test

Sentiment Indicator: The Put/Call Ratio is an indicator that shows put volume relative to call volume. Put options are used to hedge against market weakness or bet on a decline. Call options are used to hedge against market strength or bet on advance.

This indicator is used to gauge market sentiment. Sentiment is deemed excessively bearish when the Put/Call Ratio is trading at relatively high levels, and excessively bullish when at relatively low levels.

3.28 - $VLE - Zweig 4% Rule - Weekly

Sentiment Indicator:

3.30 - RSP:SPY - Monthly

Relative Strength Indicator:

3.38 - !GT20SPX - Weekly

Breadth Indicator:

3.38 - !GT20SPX - Weekly #2

Breadth Indicator:

3.40 - $Mkt Thrust Ind - Weekly

Breadth Indicator:

This information is presented for education purposes only. StockCharts.com is not responsible for any comments, advice, or annotations presented on this page. Please review our Terms of Use for more details.