On 05/18/23 the S&P 500 (SPX) made a new post October 2022 rally high and invalidated a bearish “Rule of the majority” signal. Today 05/22/23 the Nasdaq Composite (IXIC) was the only one of the three main U.S. stock indices to make a new post October 2022 rally high. A bearish rule of majority signal.
The daily IXIC, SPX, and Dow Jones Industrial Average (DJI) illustrates their relationship.
When the IXIC starts declining it could be the beginning of a multi-month drop for U.S. stocks.