This study investigates the ability of daily technical indicators to predict the direction of change in the Standard and Poor's 500 Index (as measured by price relatives). Two sets of variables widely used by technical analysts are employed, and are designated “regular” variables and “percentage” variables. Examples of relevant “regular” variables are: volume; proportion of stocks advancing, declining, and remaining unchanged; off-lot purchases, sales, and short-sales; and new highs and new lows.