{"id":16427,"date":"2011-11-21T14:25:08","date_gmt":"2011-11-21T19:25:08","guid":{"rendered":"http:\/\/www.thedisciplinedinvestor.com\/blog\/?p=16427"},"modified":"2016-09-20T10:38:56","modified_gmt":"2016-09-20T14:38:56","slug":"an-update-on-the-spearman-indicator-caution-prevails","status":"publish","type":"post","link":"https:\/\/thedisciplinedinvestor.com\/blog\/2011\/11\/21\/an-update-on-the-spearman-indicator-caution-prevails\/","title":{"rendered":"An Update on the Spearman Indicator &#8211; Caution Prevails"},"content":{"rendered":"<p>The Spearman Indicator is just one of the excellent tools that you should have in your kit to determine those times that markets may be ready to see a directional change in trend.<\/p>\n<p style=\"text-align: center;\"><a class=\"twitter-follow-button\" href=\"https:\/\/twitter.com\/andrewhorowitz\" data-show-count=\"false\">Follow @andrewhorowitz<\/a><script type=\"text\/javascript\" src=\"\/\/platform.twitter.com\/widgets.js\"><\/script><\/p>\n<p>Notice that it has showed a divergence recently that led to a series of lower readings. For now, the indicator is saying that negative returns are a higher probability for a while for the S&amp;P 500 Index. Until it reverses course and begins to <!--more-->trend higher, proceed with caution.<\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2011\/11\/spearman_11212011-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-16628\" title=\"spearman_11212011\" src=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2011\/11\/spearman_11212011-1.jpg\" alt=\"\" width=\"596\" height=\"416\" \/><\/a><\/p>\n<p>The Spearman Indicator, also known as the Spearman Coefficient, at the bottom of the chart is derived from an analysis of the correlation between an actual price series and a sorted list of the same series. \u00a0 The result is a comparison of the volatility of a security with an efficient price trend. \u00a0 A breakdown in the correlation of price changes will result in a reversal of the oscillator, signaling a trading opportunity. \u00a0 A value of -80 implies persistent negative trading. \u00a0 When this reverses upward, the correlation is breaking down, signaling a chance in the underlying directional bias. \u00a0 When the oscillator crosses above -80 that may be interpreted as a buy signal. \u00a0 When it crosses below 80, that\u2018s a sell signal.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: center;\">___<\/p>\n<h3 style=\"text-align: center;\">Looking to invest in The Disciplined Investor Managed Growth Strategy?<br \/>\nClick <a href=\"http:\/\/www.thedisciplinedinvestor.com\/blog\/mailbox\/tdi-investment-fund\/\"><strong>HERE<\/strong> <\/a>for the virtual tour&#8230;.<\/h3>\n<p style=\"text-align: center;\">___<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Spearman Indicator is just one of the excellent tools that you should have in your kit to determine those times that markets may be ready to see a directional change in trend. Follow @andrewhorowitz Notice that it has showed a divergence recently that led to a series of lower readings. For now, the indicator [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[5,12],"tags":[],"class_list":["post-16427","post","type-post","status-publish","format-standard","hentry","category-economy","category-markets","et-doesnt-have-format-content","et_post_format-et-post-format-standard"],"acf":[],"_links":{"self":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts\/16427","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/comments?post=16427"}],"version-history":[{"count":0,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts\/16427\/revisions"}],"wp:attachment":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/media?parent=16427"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/categories?post=16427"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/tags?post=16427"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}