Personally, I like this index – why? as far as I know, they no longer have a futures market for it so “what you see is what you get.”
From Wikipedia: The NYSE Composite is a stock market index covering all common stock listed on the New York Stock Exchange, including American depositary receipts, real estate investment trusts, tracking stocks, and foreign listings. Over 2,000 stocks are covered in the index, of which over 1,600 are from United States corporations and over 360 are foreign listings; however foreign companies are very prevalent among the largest companies in the index: of the 100 companies in the index having the largest market capitalization (and thus the largest impact on the index), more than half (55) are non-U.S. issues. This includes corporations in each of the ten industries listed in the Industry Classification Benchmark. It uses free-float market cap weighting.
Funny, it hasn’t made a new high has it? if you have been following our work of late, we have rolled 6 major thesis points in the intermarket world that shows a top is at hand or in place. We have also looked at ratio’s of staples/spx and wallmart/spx and have shown PATTERNS that have completed. we also have used extremely long term points to look for resistance areas (see DOW post) and now we are using the all time low on the NYSE Index to show how in October 1974 at 347.7 and showing how that is a key node for projections and retracements ..
so what do we have now … we have a major pattern completing on this “pure index” on a monthly basis. also, and I think most importantly, we have the purple triangles equal to each other in PRICE and TIME.
but, I’m going to be objective here — PATTERNS do fail. I am an intermarket musician and I try to weave patterns across multiple aspects of the circle of life and look for key inflection points. I am NOT a TIMER or a BOTTOM/TOP picker. I’m a pattern recognition trader and if that is a top or bottom, I really don’t care …
I’ll leave you w/ one final thought … a fellow trader, mentor and dear friend has lived and breathed and still trades the market after 60 years of being in the game… his quote today was “I have never seen anything like this in my trading life. SOMETHING is not right in camelot.”
And the band played on … a chart for your viewing pleasure: