Top Advisors Corner

The Ord Oracle March 29, 2022

Tim Ord

Tim Ord


SPX Monitoring Purposes: Long SPX on 3/25/22 at 4543.06.

Monitoring Purposes GOLD: Long GDX on 10/9/20 at 40.78.

Long-Term SPX Monitor Purposes: Neutral.

We updated this chart from yesterday, when we said, "The bottom window in the chart above is the NYSE McClellan Oscillator. Bullish intermediate signs are triggered when the Oscillator falls below -300, then rallies above +200. On January 27, the Oscillator fell to -304 and rallied to +230 on March 19. This "Sign of Strength" is an intermediate-term bullish sign. Page two shows the weekly chart of the NYSE Summation index, which also suggests a bullish intermediate rise." Added to the above, on March 28, the Oscillator closed at plus +135; with today's near 4/1 Advance/ Decline, the Oscillator will be above yesterday's reading and well above "0" and bullish. The current rally could last into May 10 (see page 2).

Yesterday, we said, "Above is a longer term view of the SPY (SPX) of what may be developing. The second window up from the bottom is the weekly NYSE McClellan Summation index. When the market becomes oversold, the Summation index falls below -700, which implies there where no more sellers left (hence the term "market is sold out"). With no seller left to sell, the market can move higher. During previous times when the Summation index hit -700 or lower, the Summation had a steady rise to +1000 or higher. What I'm saying here is that SPY (SPX) may steadily move higher until the Summation index reaches above +1000. The current reading is -354. This chart suggests the market could trend higher for the next 30 days or longer." Added to the above, for the time it took the NYSE McClellan Summation to travel from -700 range to the +1000 range, the last three noted on the chart above is just over two months. Should the current situation rhyme with the previous three, than the NYSE McClellan Summation index (which hit -700 March 10) may reach +1000 around May 10.

We have shown this chart is the past. On a previous report, we were expecting GDX to move sideways and, so far, that appears to be playing out. There still maybe a week or two of sideways action before another impulse wave starts, which is expected to go higher. The bottom two windows are the Advance/Decline percent and Up Down Volume percent, with an 18-day average for the GDX. As long both indicators stay above 0, the uptrend is considered intact. GDX has only retraced 38.2% of the rally that started form the January low, suggesting this sideways consolidation is at the halfway point of the move up; that would give a target near the 47.00 range.

Tim Ord,

Editor

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