Articles

General Market and Major Sector Qualified Trends

Understanding the true trend of the market and market sectors is critical to forming a viable trading bias. That knowledge exists only here at Technical Analysis Today where L.A. Little shares his database of trends for the general market and major market sectors. Trends as defined in his ground-breaking book, Trend Qualifications and Trading, postulates that there are three qualified trends to every market, sector, and stock. You generally want to trade in the direction of the trend for the time frame you wish to trade on.

There exists three timeframes for every instrument, the long, intermediate, and short term. These timeframe lengths are three months for the short term, one year for the intermediate term and five years for the long term. These timeframes exists for all markets and all instruments that trade on each market all around the world. Here you will find the qualified trends for U.S. markets (general markets as expressed through the DJIA, S&P 500, NASDAQ and IWM) as well as the qualified trend for the 9 major sectors (as defined and tracked through the Select Sector SPDRs) that that comprise these general markets. The data is automatically updated nightly.

 

Qualified Trends for the General Markets

General Market

Short Term Trend

Intermediate Trend

Long Term Trend

DJIASuspect BullishSuspect BullishSuspect Bullish
NASDAQSuspect BullishConfirmed BullishSuspect Bullish
IWMConfirmed SidewaysConfirmed BullishConfirmed Bullish
S&P 500Confirmed BullishSuspect BullishSuspect Bullish

 

Qualified Trends for the Major Market Sectors

General Market

Short Term Trend

Intermediate Trend

Long Term Trend

XLF - FinancialsConfirmed SidewaysSuspect BullishSuspect Bullish
XLE - EnergyConfirmed BullishSuspect BullishSuspect Bearish
XLK - TechnologyConfirmed BullishSuspect BullishSuspect Bullish
XLY - Consumer DiscretionaryConfirmed BullishConfirmed BullishSuspect Bullish
XLP - Consumer StaplesConfirmed BullishConfirmed BearishSuspect Bullish
XLV - Health CareSuspect BearishSuspect BullishConfirmed Bullish
XLI - IndustrialsConfirmed BearishSuspect BullishConfirmed Bullish
XLB - Basic MaterialsConfirmed BearishConfirmed BullishConfirmed Bullish
XLU - UtilitiesSuspect BullishSuspect BullishSuspect Bullish