A very simple indicator I follow is the weekly MACD on a variety of indexes and individual stocks. It’s usually a pretty good indicator of the overall trend. By crossing down today a very simple sell signal was triggered for the S&P 500. This is validated by the same signal being triggered in the Dow, the Nasdaq and the Russell 2000 (though I won’t bore you by posting all the charts here).
As is plain to see in the chart above, by just following this simple indicator in being a buyer after the MACD crosses up and a seller when it crosses down a trader would have done fairly well. And an investor could have added a simple technical element to improve the timing of their fundamental process.
For more information about studies like this request a copy of me eBook, “FIRE Wall Street.”