Category Archives: Momentum

On 04/29/21 Amazon.com Inc (AMZN) released its first quarter earnings that crushed estimates. Revenue was up 44%, profits were up an incredible 224%! The next day 04/30/21 AMZN rallied to 3554.00 marginally above its all-time high made 09/02/20.  AMZN  finished the 04/30/21 trading session down 3.89, at the close 05/10/21 AMZN was down 10% fromContinue reading “The Amazing Amazon.com”

At the close of trading 04/22/21 it looked like the US stock market was in the process of a bearish rollover. The next day – bulls strongly disagreed. On the surface the  powerful rally looks sustainable, viewed in a broader context it reveals many bearish signals.  When only one of the three main US stockContinue reading “Bearish Rule of the Majority Signal”

Today 04/22/21 the S&P 500 (SPX) came within eleven points of making a new all-time high before turning down sharply.  Neither of the other  two US main stock indices, Dow Jones Industrial Average or the Nasdaq Composite were able to make new all-time highs. Today may have been the  bulls last gasp to keep theContinue reading “Stocks Rollover”

Today 04/05/21 the S&P 500 (SPX) reached an 86.3% gain from its 03/23/20 bottom. This move in a little more than one year is mind boggling and rare. Momentum and sentiment bearish divergences abound which have been documented in recent posts.  The daily SPX chart courtesy of Trading View illustrates daily RSI and MACD bearishContinue reading “Buying Panic?”

Toady 3/30/21 the S&P 500 (SPX) had a shallow decline. More importantly, the Russell 2000 (RUT) was up for most of the day.  Recently RUT has been lagging the SPX. The daily RUT and SPX chart courtesy of Trading View illustrates the recent action between the two indices. RUT’s most recent correction was down aboutContinue reading “Weak Stock Market Decline”

Toady 03/09/21 the Dow Jones Industrial Average (DJI) made a new all-time high unconfirmed by the other two main US stock indices S&P – 500 (SPX) and Nasdaq Composite (IXIC). This is what I call a “Rule of the majority” signal and is an indication of weaking upside momentum, a healthy rally would have allContinue reading “Dow Jones Industrial Average and Nasdaq – 100”

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”