I consider the Value Line Geometric Composite Index (VLG) and the Nasdaq Composite Index the best measures of the broad US stock market. I like the VLG for several reasons. It has about 1.700 company stocks, all having equal weight and thus having the same or similar influence on the index. It includes stocks of companies in all major sectors and of all types and sizes. And it is computed with a geometric average (hence the name).
As can be seen in the monthly chart below, it looks like the VLG is breaking out to the upside from a three-bar triangle pattern, after consolidating above prior swing highs. The highest all-time monthly close is 576.89 from January this year, so it will be interesting to see where the index will end the month.
The daily chart shows better the January resistance area @ about 585-590. I am watching closely the MA Oscillator in the study window. I want to see new highs in both the slow line and the fast line to confirm the possible breakout.
