This oddball indicator may foretell the direction of the stock market through 2018

collected by :Haron Adler

as mentioned in Please observe the following from the chart:• The chart is a long-term chart that covers the period of the 2008 stock market crash. The parabolic indicator is best used in strong trending markets. • The chart shows that in the long history since the 2008 crash, the parabolic indicator reversal happened only once for a short period. • Of significant interest is that during this long bull run in the stock market, the internet ETF never got oversold, as shown on the chart. The internet ETF counts Amazon AMZN, +0.64% Facebook FB, +2.41% Netflix NFLX, +2.47% and Alphabet GOOG, +1.41% as its largest holdings.

Investing: Is the stock market correction over?

Just when they think they're out of the woods, investors keep getting pummeled by a stock market that can't seem to make up its mind whether it's headed up or down. After reaching a high of 2,873 in January, Standard & Poor's 500-stock index sank 10.2 percent through early February, putting the broad market index in official correction territory (defined as a drop between 10 percent and 20 percent from the peak). The bellwether index recovered but failed to get back to its previous high before sinking back to the correction low point in early April. Even if stocks claw their way back to the old high, we can expect another correction in short order, says Sam Stovall, chief investment strategist at market research firm CFRA. The consequences of leaving even an aging, jittery bull market too early can be costly, says Jeffrey Kleintop, chief global investment strategist at Charles Schwab .

Goldman Sachs: Weak stock market returns are ahead even with booming earnings

as declared in A continued surge in corporate earnings will have only limited benefit for stock prices, which face multiple policy obstacles, according to Goldman Sachs. "The US economy is growing, corporate profits are rising, and stock prices shouldcontinue to climb through 2019," David J. Kostin, Goldman's chief U.S. equity strategist, said in a note to clients. Goldman now estimates full-year earnings in 2018 to come in at $159 per share, a boost from the $150 original forecast. In addition to the profit increase for 2018, Goldman raised its 2019 forecast to $170 from $158, implying 7 percent growth, and 2020's from $163 to $178, indicating a 5 percent earnings gain. That 2019 forecast would be about half of what investors have come to expect from the market over time.

The machines warn of 'significant' downside risks facing the stock market

To find out, Barron's asked Wolfe Research's Yin Luo, former star quant at Deutsche Bank DB+2.96% and longtime artificial-intelligence evangelist. "We are still bullish but warn investors that the downside risk is significant, which is different from last year," Luo says. We'll have to wait and see what Trump has to say if this bull market dies on his watch. Two days later, Randal Quarles, Fed vice chairman for bank supervision, delivers a speech on international bank regulation at an event in Sun Valley, Idaho, while Boston Fed President Eric Rosengren speaks in Washington. St. Louis Fed President James Bullard on Thursday talks economy in a moderated conversation.

Friday will likely be the year's biggest stock market volume day with big action in Apple, JP Morgan

Trading firm ITG estimates that 800 securities will trade more than a full day's volume at or near the close, and 150 will need to buy or sell more than 10 days' worth of volume. Indexers will need to buy 2.3 million shares, which is more than five times a full day's volume, according to ITG. Some companies have increased in value and are going from the Russell 2000 into the Russell 1000. The net result: ITG estimates that Grubhub will see volume of about 3.8 million shares — about three times its normal volume. But there is far more money indexed to the Russell 2000 than to the Russell 1000, so those selling it in the Russell 2000 have more to sell in dollar terms than those buying it in the Russell 1000.