This chart shows the proprietary CrystalBull Trend Indicator, in relation to the S&P 500, and is updated monthly. In our opinion, this is our best indicator for the longer term stock market trend. This algorithm looks for market tops and bottoms to be established, so may lag the exact market trend reversal points by a short period. This market timing model is for long-term investors, who seek to avoid secular bear markets. Since 1970, following this indicator (in market when above zero, out of market when below) would have beaten a Buy-and-Hold strategy by 52.11%.
HOW TO USE: The aqua-blue line in the bottom chart represents the CrystalBull Trend Indicator. It is calculated at the end of each month, based on the currently available economic data. Values above zero indicate a possible positive trend going forward, and values below zero indicate a possible negative trend going forward.
( HINT: Click-and-drag left-to-right on the top chart (S&P 500) to zoom in to a specific date range. Double-click on S&P 500 chart to zoom back out. )
NOTE: Use the "Legend" link above the CrystalBull Trend Indicator chart to hide/display/isolate various other experimental stock market indicators, by clicking on the corresponding series.