The "SPREAD" covers the "broad" market and it is our creation. It includes the several thousand stocks on the New York Stock Exchange (NYSE) and the approximate 1750 stocks in the Value Line Index (VL).  This SPREAD is the difference between the two indices.  The wider the more "BULLISH" the market is. The narrower the more "BEARISH"! The (#'s on right) and the "Green Bars" (bottom of chart) are the same. They show the distance between to two closing points.

View Larger Chart

The SPREAD failed to reach another new 52wk/all-time high for week 34   and back out of bear territory for week 8 after landing there for 1 week after 6 weeks out of it The SPREAD closed Friday, 1/27/12, at 2191.70, up +35.68, or (+ 1.65%) this past week vs, up +60.97, or (+ 2.91%) the previous week. The SPREAD pulled out of correction territory for the second week after being there for 24 straight weeks by closing at a discount to the 52 week high of -6.28%. The 52 week & all-time closing high is 2338.47 reached on 4/29/11. The 52 week low is 1673.51, set on 10/3/11. We are watching the VL climb while the NY is still heading down, a bullish sign for the near term, but if the NY does not turn up soon the VL will turn down, as basically they are still the same market and cannot run from each other forever. One thing to note is the chart above covers over 20 years, therefore changes take time, meaning there could still be several months left for the bull. The distance between the two (spread) continues to grow, if the VL is climbing faster than the NY, or shrink, if the VL is falling faster than the NY. Since the big OTC stocks are part of the VL index, when the big OTC stocks fall, the VL falls. If the VL is losing ground faster than the NY, it means the big OTC stocks are selling more than the NY stocks. If the VL is climbing faster than the NY, it would mean more buying in the OTC stocks. The SPREAD climbs when the VL is stronger and falls when the VL is weaker. A great way of knowing what side of the market is doing the best. Closing up +35.68, or (+ 1.65%), this past week makes the broad index up +183.11, or (+ 9.12%) on the year. The SPREAD closed up (+ 6.64% ), year-end 2005, up + (14.04%), year-end 2006, off (- 2.08%) , year-end 2007, off - (34.52% ), year-end 2008, up (+ 81.74%) , year-end 2009, up ( +33.27%) , year-end 2010, and off -123.73, or (-5.80%) year-end 2011. The 30 day trend turned bullish 8 weeks ago after being bearish for 2 weeks after staying bullish for 6 weeks. The 90 day trend turned bullish 11 weeks ago after being bearish for 20 weeks after staying bullish for 39 weeks. The 180 day trend turned bullish two weeks ago after being bearish for 22 week's after being bullish for 35 weeks. The 1 year trend turned bearish 16 weeks ago after staying  bullish for 106 weeks, after staying bearish for 85 weeks, after being bullish for 228 weeks. The SPREAD is unique to the Stocks in the Spotlight since we designed it in 1090 by producing an "equal value equation" allowing a better view of the longer term markets when comparing the big OTC stocks to the New York Exchange listed stocks. The SPREAD covers such a broad market that it offers a look at the "big" picture. The idea behind the SPREAD is that if we see the New York (NY) index rising faster than the Value Line (VL) we know that the stocks traded on the NY are getting more activity but stocks on the Over-The-Counter (OTC) are not getting as much interest. The reason for this action is because none of the large OTC stocks trade on the NY. No matter how many shares of Microsoft trade, or how many dollars it may change, it will not show up on the NY. Companies such as DELL, Yahoo!, Liz Claiborne, are just a few of the (OTC) stocks not on the NY. Therefore, if the VL rises faster than the NY we know the buying is coming into the big OTC stocks and if we see the VL fall faster we know there is greater selling in the big (OTC) stocks.  We end up with a theory: The MARKETS are not able to move very far,  in either direction, without the SPREAD! The SPREAD tells us the "real game" the whole market is playing.

Our SPREAD index is different than the normal Value Line/New York Spread due to the fact that we assigned each index equal weight in 1990 when the VL crossed under the NY, the only time it ever happened. You can keep your own Spread by subtracting the close of the NYSE from The close of the VL. The number you will be left with is the actual "difference" between the two indices or the "SPREAD". (remember that the number will not be the same as ours, because of our equal weighting, but the concept will be)

| Quotes &News | Market Comment | Research Reports | Spotlight Futures | | The Trend | The DOW 30 | The SPREAD | The Current Market | 2012 vs 2011 | | Questions & Comments | Indices Gain/Loss | Favorite Links | | Home | Site Map | About the SITS | Disclaimer | | Search Our Site | | Join our Member List | THE CENTER STAGE | Current Up-Date | Closer Look Stock | Special Situation | | Stocks To Watch | Market Talk | Spotlight Stock | SERVICES | Advertising | Web Promotion | Web Page Design | Consulting |