The 01/06/24 blog “Intraday Elliott Wave Count for the S&P 500 500 – 01/04/24” illustrated S&P 500 (SPX) bullish momentum divergences that implied a bounce and noted.
“If on 01/08/24 there’s no move below the 01/05/24 low, the bounce is probably developing”.
On 01/08/24 the SPX opened above the 01/05/24 low. The subsequent SPX bounce has been a miniature version of the manic October to December 2023 rally.
The SPX 15 – minute chart courtesy of Trading View updates the action.
The SPX high on 01/10/23 was only 2.50 points below its 2023 high made on 12/28/23. RSI had a bearish divergence vs. its 01/08/23 reading. Also note RSI went below its moving average line.
CCI had an intraday bearish divergence – failing to confirm the RSI intraday high.
The daily NYSE – 52 – week Hi- Lo ($MADN) chart courtesy of Barchart.com illustrates internal momentum.
While the SPX reached the area of its late December peak, $MADN had an insignificant rally.
The daily S&P 500 Bullish Percentage Index ($BPSPX) courtesy of StockCharts.com digs even further below the surface of price action.
The Bullish Percent Index, is a breadth indicator that shows the percentage of stocks on Point & Figure Buy Signals.
The SPX rallied 2.3% from its low on 01/05/24. Today, 01/10/24 $BPSPX made a new low for its move down since 12/28/23!
External and internal momentum indicators imply the decline could resume on 01/11/24.
At 8:30 AM – EST – on 01/11/24 the U.S. December – CPI report is due to be released.
Buy the rumor, sell the news?
Four Dimension Trading 