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GEN - trend exhaustion or anatomy of a crash



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<DIV><FONT size=2>Here is an interesting little gem from the TASC Jan 1991 issue 
PG 18.&nbsp; The Trend Exhaustion Index by Clifford Creel appears to catch the 
major trend changes.&nbsp; "The index is constructed by dividing the NYSE new 
highs by the NYSE advances each day and plotting a 10 day exponential moving 
average of this value."&nbsp; ELA is attached along with a .gif from 1986 - 1987 
and another for comparison 1998 - 1999.&nbsp; The shocking thing is the&nbsp;TEI 
never did recover from the 1998 low and actually started decaying in 1997.&nbsp; 
TEI will track along near zero until the next upswing starts...something to 
watch for going into 2000.</FONT></DIV>
<DIV><FONT size=2></FONT>&nbsp;</DIV>
<DIV><FONT size=2>{Trend Strength Index}</FONT></DIV>
<DIV><FONT size=2>{index in data1, new highs in data2, advancing issues in 
data3}<BR>Inputs:&nbsp; Price1(c of data2),Price2(c of data3);<BR>Vars:&nbsp; 
TEI(0);</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV><FONT size=2>If price2&lt;&gt;0 then<BR>TEI=TEI[1] + 0.18*(price1/price2 
-TEI[1]);</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV><FONT size=2>plot1(TEI,"TEI");<BR></FONT></DIV></BODY></HTML>
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