Category Archives: Momentum

On 06/30/23 the S&P 500 (SPX) made a new post  October 2022 rally high.  Time cycles indicate a potential top late June to early July 2023.  U.S. stocks could be on the verge of an important summit. The 06/27/23 blog “Start of the Final Rally?” noted   “The end of the second quarter is 06/30/23, there’sContinue reading “At the Summit?”

On 06/21/23 the S&P 500 (SPX) declined .52% while the Advance/Decline was almost flat.  Today 06/22/23 the SPX was up .37% while the NYSE Advanced/Decline line was 2.3 to 1 in favor of declining stocks.  The hourly chart courtesy of Trading View illustrates the short-term action. The SPX failed to reach the target support zoneContinue reading “Shallow Correction Complete?”

From 05/25/23 to 06/16/23 the S&P 500 (SPX) was in a strong and steady rally.  Corrections of these rallies are usually short and shallow.  The crowd recognizes the trend and are eager to buy a decline. Those holding long are reluctant to sell.  The drop from the 06/16/23 peak could be shallow.  The hourly SPXContinue reading “Shallow Correction – 06/21/23”

The S&P 500 Bullish Percent Index ($BPSPX) is signaling a potential S&P 500 (SPX)  topping zone.  The Bullish Percent Index  is a breadth indicator that shows the percentage of stocks on Point & Figure buy signals. This indicator is good at identifying developing  bearish stock market momentum.  There are usually several bearish divergences before anContinue reading “S&P 500 Topping Zones”

Bitcoin in U.S. dollars (BTCUSD) has a close relationship of trending with the Nasdaq Composite (IXIC).  Since April 2023 the two markets have separated.  Its possible the current BTCUSD bear trend is a warning sign for a significant IXIC decline. The weekly BTCUSD and IXIC chart courtesy of Trading View illustrates their relationship since NovemberContinue reading “Bitcoin and Nasdaq Composite Connection”

In bull market rallies stock indices trend together.  Making new highs at about the same time and declining together.  Moves up during large bear markets tend to be more erratic. A comparison of the post October 2022 U.S. stock market rally with a prior bullish phase reveals some interesting insights. The U.S. stock rally thatContinue reading “Bull Market Rally vs. Bear Market Rally”

Today 06/01/23 the S&P 500 (SPX) made a new post October 2022 rally high unaccompanied by either the Dow Jones Industrial Average, or the Nasdaq Composite.  A bearish “Rule of the majority signal.  Additionally, the VIX low today was 15.58 vs. its 05/01/23 reading of 15.53.  This higher VIX bottom retains the VIX topping signal.Continue reading “Divergences Continue – 06/01/23.”