Bullish daily signals are back

The market was up and down on Friday, but bullish signals dominated the daily charts of the Russell 2000 by the end of the day. I have not taken action yet, but it looks as if I will need to do so on Monday. I have been allowing to 115.71, the peak of the first bearish signal in the series.

I started looking at a faster RSI Trend study today that works pretty well on daily charts, but not on the weeklies.

Flickering signals

Signals from the volatility spread have been flickering on the daily chart – bearish, bullish, bearish, bullish. To filter, I am staying bearish against the peak of the original bearish signal of 31 December 2013 at 115.71.

Volatility spread guidance is itself volatile lately

Stocks have been marching in place, making trend guidance volatile. I have been letting things ride against 115.71, the  high of the bearish signal of 31 December 2013.

Volatility Spread Guidance Wavering

The volatility spread and its moving average both closed at 0.37 today. The system paints such a develop as a cross-over, so the daily chart shifted to a bullish signal. I am waiting to see what develops on Wednesday before concluding that prices may push meaningfully higher.

More bearish trend guidance

The volatility spread remains bearish.
The interest rate/stocks spread turned bearish.
The equal weight/market weight spread turned bearish.
The RSI Trend signal returned to bearish after one day in bullish territory.

Mixed Trend Guidance

The volatility spread and synthetic volatility remains bearish, but the RSI Trend Indicator returned to bullish and the moving average study remains bullish. My focus is mainly the volatility spread chart when working with the Russell 2000 Index.