Today 01/22/25 the S&P 500 (SPX) made a new all-time high unconfirmed by the Dow Jones Industrial Average (DJI) and the Nasdaq Composite. This by itself is a potentially very bearish momentum signal.
The daily SPX chart courtesy of BigCharts.com updates its action.
BigCharts.com – Slow Stochastic indicator is very effective in discovering potential trend changes. As of 01/22/25 both lines are in the overbought zone which begins at 80.00.
Daily RSI has a bearish divergence vs. the early December 2024 reading.
The hourly DJI chart courtesy of Trading View updates its intraday action.
Recent blogs on this website have speculated the DJI was forming an Elliott wave – Expanding Flat correction. That pattens may have been completed at the 01/22/25 late session high.
The DJI exceeded Fibonacci resistance in the 43,480 area a potentially bullish signal. However hourly momentum is bearish.
RSI has a bearish momentum divergence and has crossed below its moving average line.
MACD has a bearish lines cross and Histogram has a bearish divergence.
Its possible the SPX achieved a major high on 01/22/25 . The DJI and Nasdaq Composite may have made significant secondary peaks.
The small cap index Russell 2000 (RUT) closed its 01/22/25 session down and continues to underperform the three main U.S. stock indices. If a significant U.S stock decline has begun RUT is likely to lead the way down.
On the open of the 01/23/25 session short 100% RUT non leveraged funds. Use a move above RUT 2,370.00 as a stop loss on half the position. Use a move above RUT 2415.00 as a stop for the second half of the position.
Four Dimension Trading 