Market Signals Summary:
The MAC-US model is invested. Also invested is the “3-mo Hi-Lo Index of the S&P500”. The monthly updated S&P500 Coppock indicator is also invested. The MAC-AU is also invested. The recession indicators COMP and iM-BCIg do not signal a recession. The bond market model avoids high beta (long) bonds, and the yield curve trend is indeterminate. Both the gold and silver Coppock models are invested, and the iM-Gold Timer is in gold since 7/10/2017.
The MAC-US model generated a buy-signal 4/5/2016 and thus is invested in the stock-markets. The sell-spread (red graph) is below last week’s level and has to fall below zero to signal a sell.
The 3-mo Hi-Lo Index of the S&P500 is below last week’s level and at 8.24% (last week 9.42%) and is in the market since 5/25/2017.
This model and its application is described in MAC-Australia: A Moving Average Crossover System for Superannuation Asset Allocations.
Recession:Figure 3 shows the COMP above last week’s revised level. No recession is indicated. COMP can be used for stock market exit timing as discussed in this article The Use of Recession Indicators in Stock Market Timing.
Please also refer to the BCI page
The Forward Rate Ratio between the 2-year and 10-year U.S. Treasury yields (FRR2-10) is down from the previous week’s level and far away from signalling a recession. A downward trend of the FRR2-10 has set in.
A description of this indicator can be found here.