This monthly chart is weird because I have absolutely no idea why or how it works, but it does work. I can’t even remember where I found this, but it was sometime in 2015 while managing the market’s would-be topping process (that wasn’t).
We noted that the Fido 5 broke down in 2007 ahead of the crash of 2008. We noted its breakdown again in 2015, in line with what looked like a long-term topping situation in the broad market.
But similar to the way the S&P 500 crossed its weekly moving averages up in 2016 so too did Fido 5 recover its trend line. The lower panels show the Fido-SPX ratio (healthy) and Fido’s RSI (also healthy). For reference, here is the weekly SPX chart again, with the bullish moving average cross.
Subscribe to NFTRH Premium for your 30-45 page weekly report, interim updates and NFTRH+ chart and trade ideas or the free eLetter for an introduction to our work. Or simply keep up to date with plenty of public content at NFTRH.com and Biiwii.com. Also, you can follow via Twitter @BiiwiiNFTRH, StockTwits or RSS.