A characteristic of the major U.S. stock market peaks in 2000, 2007, 2022 was that at the final top only one of the three main U.S. stock was making a new high. On 09/26/24 the S&P 500 (SPX) a made a new all-time high unconfirmed by the Dow Jones Industrial Average, and Nasdaq Composite. During 2024 there have been several of these bearish signals – all were ultimately invalidated.
The daily SPX chart courtesy of BigCharts.com illustrates its external momentum.
Daily Slow Stochastic has a bearish divergence and a bearish lines cross.
RSI has a significant bearish divergence vs. the mid – July top.
MACD is mixed, Histogram has a bearish divergence, lines are bullish.
The daily NYSE new – 52 – week highs ($MAHN) chart courtesy of Barchart.com updates internal momentum.
In late 2023 $MAHN made a momentum peak, then in the first half of 2024 had several bearish divergences vs. new highs for the main U.S. stock indices. In July 2024 there was a bullish momentum surge that blew away the bearish divergences.
On 09/26/24 $MAHN had a significant double bearish divergence vs. the SPX all-time high.
The rally of U.S. stocks during 2024 has been extraordinary because so many of the bearish momentum divergence have been invalidated. Anything can happen during market trends; analysis relies on probabilities not certainties.
The manic rally of U.S. stocks during 2024 has so far been able to shrug off bearish momentum that would normally be the prelude to at least a 20% decline.
We could soon find out what happens with this latest evidence of bearish momentum.
Four Dimension Trading 