The 12/09/23 blog “VIX Makes a New Low- 12/08/23” noted the VIX low implied the S&P 500 (SPX) could rally into early January 2024. There was also a short – term bearish signal illustrated and noted.
“The breakout to a new SPX – 2023 high also came with bearish divergences on the RSI and MACD. If these signals are effective, a subsequent downturn could be brief.”
The downturn was brief, lasting only 25 – trading minutes. The decline in the SPX from 12/08/23 to 12/11/23 was three tenths of one percent.
The ravenous bulls are buying tiny and shallow declines.
The daily SPX chart courtesy of Trading View illustrates two momentum indicators.
The SPX rally high was confirmed by both the RSI and CCI making new post 10/27/23 rally highs. These readings imply there may not be even an intermediate SPX peak for at least a few trading days.
On 12/12/23 the VIX made another low which implies a primary SPX top may not occur until at least early or mid-January 2024.
Today, 12/13/23 the Dow Jones Industrial Average (DJI) made a new all-time high. The next blog will illustrate an updated long-term DJI – Elliott wave count with upside Fibonacci price targets for the DJI and SPX.
Four Dimension Trading 