1. Traffic LightTM Weekly
Crystal Clear Indicator, L.L.C.
July 20th, 2018
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Disclaimer
Traffic LightTM and Capital Appreciation PointTM are the results of proprietary risk analysis models and should be used as a part of your due diligence process.
Crystal Clear Indicator is not a licensed financial advisor.
Investing involves risks.
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Agenda
Review Traffic Lights (TL)
TL S&P 500, a long-term indicator, is bullish.
TL Dow Jones and TL NASDAQ, the intermediate indicators, are showing red spikes. New bullish strategies should be deployed cautiously.
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4. Application of Traffic Lights
The introduction of Traffic Lights can be accessed at the blog section:
“New in Starter B” blog is also a good resource
The session will focus on the current situation.
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5. Traffic Light S&P 500 (Long Term Indicator) July 20, 2018
Current light is in yellow.
When there is a pull back like CAP events or TL DOW and/or NASDAQ shows preferred bullish traits (started on Feb 26 , 2018 and April 16, 2018), it could be a good entry for long positions.
Consider using S&P 500 CAP, TL Dow Jones and NASDAQ for intermediate entries.
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6. Current Daily View July 20, 2018
No 3 white soldiers in this 4 synchronizations correction yet. The pattern is likely to emerge at a major support.
Notice higher above average volume on down day and below average volume on up day. Not a strong bullish sign.
The index is still in the trading range.
Resistant (red rectangles) is 280 to 285 area.
Support is 253 to 260 (green rectangle) area near the last low.
Volatility has been decreasing.
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7. Current Weekly View July 20, 2018
10 W EMA is higher than 30 W SMA- a long term bullish stance
Weekly resistant at 280 to 285 remains.
Weekly support at is holding and the index has bounced from 30 W SMA.
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8. Candle Pattern: Three White Soldiers
In the last 7 preferred bullish traits with S&P 500 CAP, 3 white soldiers candle pattern has always occurred prior to a solid bullish run. The pattern has not emerged this time.
3 white soldiers: 3 consecutive up days with average 1 % gain per day and a full bar per day.
At least 1 of 3 days has a positive volume greater than moving average (50 D).
The pattern often starts at the major support of a correction.
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1/29/2016 event

9. Intermediate signal: Traffic Light Table July 20, 2018
Without continuous green spikes, S&P 500 and NASDAQ might not ascend robustly.
S&P 500 closed below 10 D EMA on May 29 and NASDAQ composite on June 22, indicating the recent short term burst bullish posture should come to an end and leverage positions should be exited.
On June 25, red spikes reached above 10.
The red spikes crossed above 10 and indices are below 10 D EMA, it is better to take a conservative position for intermediate bullish (6 months or less) strategies.
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TL NASDQ Zoom In July 20, 2018
Money flow out is ascending and money flow out has been descending, a short term bearish sign. The bearish tone is stronger when money flow out is above money flow in. It is possible that the index might re-test the Feb low while money flow out is above money flow in.
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TL NASDQ spike July 20, 2018
Recent green spikes are not as high as the former green spikes when accounting the amount of recent correction.
The recent emerging red spikes are high. Bullish strategies should be deployed cautiously.
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Summary
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