Technical Analysis of Broad Market, VTI
Today's blog entry deviates from the passive portfolio management advocated here at ITA Wealth Management. Why shift gears at all? When the latest Ibbotson research shows that 75% of the movement of a portfolio is tied to the broad market movements it is prudent to pay attention to market conditions. This entry falls under the general classification of Technical Analysis and the StockCharts graph below is an example. The screen shot is for the VTI ETF as it represents the movement of the U.S. equities market. Note that the VTI price is well above all three Exponential Moving Averages (EMA). In this example I am using the 50-, 100-, and 190-Day EMAs.