SPX Sector Universe Analysis for 10-May-2021
Symbol Description Instr MTA 3 RelStr CMF NH/NL MCHist
XAR SPACE & DEFENSE ETF UP 2.5:3.3 «DN» 1/6 -0.3
XLB MATERIALS ETF UP 4.6:3.3 UP 520/1 0.5
XLC COMMUNICATION SRVCS ETF UP 3.2:3.3 «DN» 1/2 -0.1
XLE ENERGY ETF UP 4.5:3.3 UP 61/1 1.6
XLF FINANCIALS ETF UP 5.4:3.3 UP 520/1 0.5
XLI INDUSTRIALS ETF UP 4.5:3.3 UP 520/1 0.3
XLK TECHNOLOGY ETF UP 2.4:3.3 «DN» 1/5 -0.7
XLP CONSUMER STAPLES ETF UP 2.2:3.3 UP 520/1 0.1
XLRE REAL ESTATE ETF UP 4.6:3.3 «up» 1/3 -0.3
XLU UTILITIES ETF UP 2.6:3.3 UP 1/4 -0.5
XLV HEALTH CARE ETF UP 2.6:3.3 UP 520/1 -0.1
XLY CONSUMER DISCRETIONARY ETF UP 2.8:3.3 «up» 1/4 -0.5
XRT RETAIL ETF UP 6.4:3.3 «up» 520/1 -0.1
Auxiliary Universe Charts

Data Columns
4. MTA 3: MTA 3-Slope Test: Grn=Up, Red=Down, Gry=Undef       7. NH/NL: Weeks since price was this high or this low
5. RelStr: Slp of ETF/Slp of index. Grn=Up, Red=Down       8. MCHist: Short-term trend indicator
6. CMF: 20-day Money Flow: Grn=Up, Red=Down, Gry=Flat       

Column Details

MTA 3
The MTA 3 signals the start of a new advance when all 3 averages have turned up and it signals the start of a new decline when all 3 averages have turned down. If only one or two of the averages changes direction it warns that a change may be coming, but a change is not confirmed until all three averages turn together.

The 3 rows of dots at the bottom of the MTA chart are used to show the slopes of the three averages used in MTA 3. The upper row shows the slope of the fast average. The middle row shows the slope of the medium average. The lowest row shows the slope of the slow average. Green dots indicate a rising trend. Yellow dots show rising but in transition. Red dots mean a falling trend, and orange dots indicate falling but in transition.

Recent changes in the indicator are flagged with special characters. Double angle brackets around the cell text ("«UP»") mean the indicator changed state today. Dashes around the text ("–DN–") mean the state changed yesterday. Equal signs around the text ("=UP=") mean it changed two days ago. Equivalence signs ("≡DN≡") mean it changed three days ago.

RelStr
RelStr is short for "Relative Strength". Relative Strength compares the slope of a security with the slope of VTI, the total market index. For SPX sectors, RelStr compares the slope of the sector with the slope of the SPX index.

When the cell background is bright green it means the index is advancing and the ETF is moving moving up even faster than the index. Dark green means the ETF slope is rising but its slope is lower than the index. Bright red means the index is declining and the security is declining faster than the index. Dull red means the ETF's slope is falling but the security's slope is not falling as rapidly as the index.

Relative Strength lets you see which securities are climbing faster than the market during an advance, or which securities are falling faster than the market during a decline. When the market is rising, it makes sense to keep your money in the securities that are rising faster than the market as a whole. When the market is falling it makes sense to short the securities that are falling faster than the market.

CMF
CMF is the Chaikin Money Flow. It has been multiplied by 10 to make it fit on the same scale as the Relative Strength indicator on the charts. If the CMF is greater than 0.2 then the cell background will be green. If the CMF is less than -0.2, the cell will be red. Otherwise, the background color will be gray.

Marc Chaikin's Money Flow indicator was specifically designed to reveal the actions of the institutional investors. Institutional investors are the big money traders on Wall Street and arguing with them is like trying to swim up stream. However, the CMF does not necessarily have to be above zero before you buy a security. If the CMF is rising and halfway (or more) to the zero line, it may be safe to go long if the other indicators are positive.

If the cell background is bright green it means that CMF is above zero and above the warning (red) line. If the cell background is dark green it means CMF is above zero but below the red line. If the cell color is dark red it means that CMF is below zero but above the red line. And if the cell is bright red, then CMF is below zero and below the red warning line.

Recent changes in the indicator are flagged with special characters. Double angle brackets around the cell text ("«UP»") mean the indicator changed state today. Dashes around the text ("–DN–") mean the state changed yesterday. Equal signs around the text ("=UP=") mean it changed two days ago. Equivalence signs ("≡DN≡") mean it changed three days ago.

NH/NL
This column shows the NewHigh/NewLow ratio. The NewHigh is the number of weeks since price was higher than now. The NewLow is the number of weeks since price was lower than now. If the New High number is greater than the New Low + 3, then the background color will be green. If the New Low number is greater than the New High + 3, then the background color will be red. Otherwise, the background color will be gray. Both numbers are capped at 520 (10 years).

If the New High number keeps getting larger and the New Low number stays small (single digits), this is an indication that price is going steadily up. When the New High number is greater than or equal to 52, it means that the effect of historic resistance (previous price action) has been greatly diminished.

MCHist
This column shows the state of the histogram bars for the Moving Average Convergence/Divergence (MACD) indicator. Interpretation of the MACD involves so many details that it is not possible to provide a meaningful description of it in just a few sentences. A detailed explanation of the indicator is given in the white paper "MACD Evolution".

The background color of these cells matches the current color of the MACD Histogram.