The SPX 7-1 Trend-Following Strategy
Key points:
- I generally try to write notes that are timely and relevant to the current market conditions, and/or imminently actionable
- However, occasionally I step back and focus on the bigger picture, and/or indicators or models that can be used objectively in the future
- This piece focuses on a simple trend-following model that uses the S&P 500 (SPX) Trend Score indicator
- For lack of a better phrase, I will refer to this simply as the 7-1 Strategy. This strategy has been bullish since May 15, 2025, and remains so now
What is the S&P 500 (SPX) Trend Score?
The Absolute Trend Score Indicators use a weight-of-evidence framework, aggregating 10 trend-following indicators to deliver a comprehensive composite score for trend evaluation. Scores range from 0 (weakest) to 10 (strongest).
Although the components and duration parameters remain fixed, the indicators provide investors with flexible options for identifying trading or investing opportunities and controlling risk. Additionally, the composites can serve as a secondary filter for your existing technical or fundamental investment approaches, ensuring your strategies align with current market trends. The Absolute Trend Score evaluates the strength of an asset's individual trend.
Trend Score Conditions:
- Close

