Category Archives: Momentum

US Stocks Up on Bearish News

Today 05/04/22 the FOMC  again raised interest rates, and US stocks had a big rally. The daily S&P 500  (SPX) chart courtesy of Trading View illustrates the action. Daily RSI after recording  a  bullish divergence  had a bullish cross over of its moving average line.  This new piece of bullish evidence adds  to the considerableContinue reading “US Stocks Up on Bearish News”

US Stock Market Momentum and Sentiment – Part Two – 05-02-22

Today 05/02/22 the S&P 500 (SPX) went below its 02/24/22 bottom eliminating the bullish divergence  of only the Nasdaq Composite (IXIC) making new  decline lows.  While eliminating the bullish divergence  there are others made by the new SPX low. The combined daily SPX and VIX chart courtesy of Trading View illustrates  the  bullish divergences. TheContinue reading “US Stock Market Momentum and Sentiment – Part Two – 05-02-22”

US Stock Market Momentum and Sentiment 04-29-22               

On 04/29/22 the US Stock market represented by the three main stock indices; S&P 500 (SPX), Dow Jones Industrial Average (DJI), and Nasdaq Composite (IXIC) wiped out a powerful rally made on 04/28/22.  Could this be  the start of a crash?  Perhaps, anything is  possible.  However, a review of momentum and sentiment readings  for USContinue reading “US Stock Market Momentum and Sentiment 04-29-22               “

Examination of the Weakest Main US Stock Index

From 04/21/22 to 04/27/22 the main US stock indices, Dow Jones Industrial Average (DJI), Nasdaq Composite (IXIC), and S&P 500 (SPX) had a powerful and sharp drops.  Today 04/28/22 the US Gross domestic product report indicated a  1.4% contraction in the first quarter of 2022. All three main US stock indices rallied  strongly on theContinue reading “Examination of the Weakest Main US Stock Index”

Sharp Stock Reversal – Part – Three

Objectivity is the most important trait that traders must have.  Traders objectively analyze the balance of evidence before acting.  If the evidence indicates a market/stock could rise – it does rally but is subsequently quickly reversed, then conditions have change.  If conditions changed, then you must objectively view the new evidence produced from the change.Continue reading “Sharp Stock Reversal – Part – Three”

Bullish Momentum Signals – 04-14-22

The 04/12/22 blog “S&P 500 Decline is Losing Momentum” illustrated that the S&P 500 (SPX) 30 – minute MACD and RSI indicators were showing bullish divergences.  On 04/14/22 internal momentum indicators were also showing bullish divergences. The daily NYSE – Advance – Decline Issues ($NYAD) courtesy of StockCharts.com illustrates the NYSE Advance/Decline line. On 04/11/22Continue reading “Bullish Momentum Signals – 04-14-22”

S&P 500  Decline is Losing Momentum

The 30-minute S&P 500 (SPX) chart courtesy of Trading View illustrates the recent action. At the 04/12/22 low there were double bullish divergences on the 30- minute MACD and RSI.  The overall drop since the 03/29/22 high is choppy and characteristic of Elliott wave – Double Zigzag corrective patterns. The SPX Bullish Percent Index brokeContinue reading “S&P 500  Decline is Losing Momentum”

Three Paths For the S&P 500 04-11-22

Today 04/11/22 the S&P 500 (SPX) broke below important support at 4450 and opened the door for three possible Elliott wave counts.  Two of the counts assume a  new bear market is under development. One wave count assumes the SPX drop from 03/29/22 is a correction within an ongoing bull market.       The first 30Continue reading “Three Paths For the S&P 500 04-11-22”