Stock investors had much to be thankful for last week as the S&P 500 received a nice 3.6% bounce. Some might be interested to hear the Pring Turner 10C fuel tank remained at +20 this week despite the bullish market action. However it is important to keep in mind that Joe Turner originally created the fuel tank as a "get ready" indicator, not a trend indicator. When the fuel tank gets full this typically indicates there is little intermediate term downside risk, it does not indicate that a change in trend is about to occur (we have other tools for that, namely TPAS). The main point to keep in mind is that the fuel tank remains in moderately positive position despite the stock market bounce, however a +20 reading is closer to neutral than bullish.
The Fuel Tank did have some changes to its underlying indicators. First off our TRIN indicator moved from a neutral to a bullish position which added +10 points. Since 2000 the TRIN indicator has registered a bullish signal 40% of the time and has produced an annualized +12.9% during that timeframe.
However our S&P 500 Bands indicator moved from a bullish to a neutral position which removed 10 points. Since 2000 the S&P 500 bands indicator has registered a neutral signal 50% of the time and has produced an annualized -0.4% during that timeframe.