Category Archives: Momentum

Of the three main US stock indices, S&P 500 (SPX) , Nasdaq Composite (IXIC), and  Dow Jones Industrial Average (DJI) – the Nasdaq Composite  has the deepest decline from its all – time high. These are the comparative drops for each index :    DJI -4.5%                                                                                       SPX -5.75%                                                                                       IXIC – 12.5% My 02/25/21 blogContinue reading “Nasdaq – 100 and S&P – 500 Comparison”

When a market or stock starts behaving differently than its norm this cam frequent be a sign of a trend change.  Since 10/30/20 bottom, the Nasdaq Composite has outperformed the other two main US stock indices: the S&P 500 (SPX) and the Dow Jones  Industrial Average (DJI). The IXIC  gained 30% from 10/30/20 to itsContinue reading “Something Different is Happening”

Bitcoin in US dollars (BTCUSD) has been trading since June 2017 and  has shown that it can be a leading indicator at significant tops and bottoms for the US stock market. The daily BTCUSD and S&P 500 (SPX)  chart courtesy of Trading View illustrates their relationship. In December 2017 BTCUSD reached its bull market highContinue reading “Using Bitcoin as an Indicator for the US Stock Market”

The NYSE New 52 – Week Highs ($NYHGH) chart courtesy of StockCharts.com shows the internal momentum of  the NYSE since the start of the secular bull market in March 2009. The five phases roughly correspond to the five peaks within an extended  nine – wave Elliott impulse wave. Phase 1 covers what I’ve labeled asContinue reading “NYSE New 52 – Week Highs – Update February 2021”

After the S&P 500 (SPX) 01/26/21 all-time high it appeared a decline lasting at least two weeks with a minimum retracement to SPX 3660 could be underway.  Both targets failed to be reached as ravenous bulls viewed the paltry drop a buying opportunity. The daily SPX chart courtesy of Trading View illustrates RSI Bearish divergences.Continue reading “US Stocks Push Relentlessly Higher”

Several posts on this site have focused on Zoom Video Communications Inc. (ZM) as a possible guide to timing the broader stock market.  The first post about ZM on 10/15/20 “Additional Elliott Wave Confirmation” noted its clear Elliott wave pattern.  Additionally, ZM because of its spectacular growth prior to its all-time high made it aContinue reading “Could Tesla be the Ultimate Mania Stock?”

On 01/22/21 the Nasdaq Composite (IXIC) made a new all-time high which was not confirmed by the S&P 500 (SPX) and the Dow Jones Industrial Average (DJI), a bearish divergence.  I call this a “Rule of the majority” signal, meaning the true trend is with the two non-confirming indices. This signal can occur at minor,Continue reading “Nasdaq New High Non-Confirmation”

Today 01/21/21 the S&P 500 (SPX) made a marginal new all-time high. While doing this both external and internal momentum indicators gave clear bearish signals. The daily SPX chart courtesy of Trading View illustrates external momentum indicators. The daily RSI now has a double bearish divergence.  The daily MACD has bearish divergences on lines andContinue reading “Bearish Momentum for US Stocks”

From  March 2009 to January 2010 the S&P 500 (SPX) had a growth rate of 72.5%. Projecting that portion of the secular bull market kickoff phase to the supposed termination phase that began in March 2020 targeted SPX 3781. The daily SPX chart courtesy of Trading View illustrates bearish momentum divergences. Today 01/06/21 the SPXContinue reading “S&P 500 Target Reached – Take Profits and Go Short”

Throughout most of 2020 Zoom Video Communications Inc. (ZM) had outperform the US stock market. Its spectacular upside performance made it not only a market leader but also a star of the bull run.  That situation change after 10/19/20 which was the all-time high for ZM.  The first ZM post was on 10/15/20 “Additional ElliottContinue reading “The Message of Zoom’s Underperformance”