A New Market Index by Dan Downing
ARTICLE SYNOPSIS ...A New Market Index by Dan Downing
Technicians are always looking for leading indices and indicators. We continually search for tools that will give us some advanced warning of the direction of the Dow Jones Industrial Average (DJIA) or the Options Exchange index (OEX 100). More than a year ago, the research team at my firm, Downing & Associates, and I combined four existing equity indices to make a new index, the mixture index. We have found this new index quite helpful in forecasting the intermediate-term trend of equity markets.
The four indices we use to build the mixture index are the Do...