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| One commonly consulted gauge of the mood of the market for Dow Industrials is the Negative Volume Index. The modern version of the indicator has received several enhancements suggested by Norman Fosback. The plot is the proportion of the daily NVI as compared to the past year's average daily NVI. The plot is orange below the unity line (neutral implication) and green above (bullish). |
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How to read the Calibrated NVI for Dow Industrials: In its modern form, the NVI is an elegant indicator, but requires some care in interpretation. The orange plot (NVI less than unity) is not considered bearish because a lowering of the NVI is a natural tendancy under many market conditions. When the plot is in the green area, it indicates that prices are rising on low volume sessions, which is contrary to the normal condition. This can be a tip off to "accumulation behaviour" on the part of someone or some group in the market. The indicator seems most significant when prices are falling and the NVI is rising, which indicates a market that is "buying on the dips". |
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| The NVI resembles a fundamental indicator more than a technical indicator in at least one respect, as it seems to be indicative over a span of months or quarters, rather then the extremely short predictive span typical of many technical signals. This chart for Dow Industrials covers the few years before the start of the chart at the top of the page. |
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| Weekly average closing altitude was 44.79 percent for the week ending 6/12/2009. Past values of the Closing Altitude indicator are marked by the blue line. 50 percent closing altitude is marked as the midline. It indicates closing prices halfway between the high and low prices for the day. Values above the midline indicate that day traders have positive feelings toward DJIA while traces below the midline are a sign that speculators are afraid to hold on to the issue overnight. The latest data indicates a downward trend, with a slope of -25.03. Dow Industrials stock prices are shown in red. |
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| The Volume Portion is low for the latest data at 0.31. Here the blue indicates the proportion between Up Volume and Down Volume. Again, the horizontal blue line represents the neutral point. Dow Industrials share prices are overlaid in red. This is an important indicator for market timing, as a change in direction of the volume line may happen before the price turns.Short term, the slope of this indicator is negative at -0.38. |
Influence of Investor Sentiment on DJIA stock prices. Also, roadmap and Summary of most effective indicators: |
| Wednesday, July 01, 2009: We have news on Public Service Enterprise Group Inc., ticker symbol PEG. Signs of an over-bought condition have become noticable. Also, there are breaking events concerning The Travelers Companies, Inc. and Kellogg Company. From the News Archive: (7/1/2009 ) Favorable events happened at Allegheny Energy, Inc., Bank of America Corporation, and American International Group, Inc.. Meanwhile, bad news came from Lexmark International, Inc.. |