"Turner Capital Total Market Index" (TMI) a tool-kit and financial partner to grow your wealth and reach your goals.
How We Make Decisions at Turner Capital
This is a short- to intermediate-term trend indicator. It reacts quickly to price changes and closely follows current market momentum. When prices are trending, the 20-week MA often acts as dynamic support/resistance and is frequently used to identify short-term pullbacks or breakouts.
The 50-week moving average is the primary point of demarcation from a market that is primarily bullish versus primarily bearish. While we can detect bear trends when the market is above the 50-WMA and bull trends when the market is below the 50-WMA, this moving average tends to set the investment bias as to being bullish or bearish.
The 86-week moving average is a primary support/resistance level that often provides an early detection of when to exit in a more profitable condition of an open trade, but is a very strong indicator of strength of momentum when the market traverses this trendline.
Rarely does the market fall through the 200 week moving average, but when it does a lot of money can be made. This is a long-term trend baseline, often viewed as a "line in the sand" for secular bull or bear markets. Breaches of the 200 week moving average are typically seen as significant and can often signal major market regime shifts.
Sometimes the market tests key levels — like the 86WMA — without committing to a clear direction. We know that if the market breaks decisively through that level, the odds favor a move to the 200WMA or below. But we also know that the 86WMA often acts as a launchpad for powerful rallies.
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