Today’s – 07/19/21 sharp decline broke below the micro-crash bottom made on 07/08/21 and could be the kickoff of a larger developing drop. Momentum evidence supports this theory. Daily RSI is 43%, the oversold zone begins at 30%. Daily MACD had a bearish line crossover. The daily S&P 500 (SPX) chart courtesy of Trading ViewContinue reading “S&P 500 – Downside Target Zone”
Category Archives: Momentum
Leading to the Downside
This sites 7/10/21 post “Momentum Continues to Deteriorate” illustrated the Nasdaq Composite – Advance/Decline line ($NAAD) had bearish momentum divergences. A case can be made that this indicator along with another A/D line are leading US stocks lower. The daily chart courtesy of Trading View illustrates the NYSE Composite (NYA), S&P 500 (SPX), and NasdaqContinue reading “Leading to the Downside”
Bearish External Momentum Indicators
The weekly S&P 500 (SPX) chart courtesy of Trading View illustrates two external momentum indicators. The highest weekly RSI reading for the entire secular bull market 2009 to 2021 occurred at the January 2018 peak. Subsequently there was a double bearish divergence at the February 2020 top. followed by a one-month crash. The maximum RSIContinue reading “Bearish External Momentum Indicators”
Momentum Continues to Deteriorate
As the S&P 500 (SPX) and Nasdaq Composite (IXIC) continue to climb, internal momentum indicators are becoming more bearish. The 06/29/21 blog “Historical Perspective of Stock Market Momentum” illustrated the Bullish Percentage Index for the SPX ($BPSPX). The daily $BPSPX chart courtesy of StockCharts.com shows the activity as of 07/09/21. On 07/08/21 $BPSPX made aContinue reading “Momentum Continues to Deteriorate”
The Next S&P 500 Resistance Level
Within Elliott motive waves there’s usually a price and or time relationship between waves “one” and “five”. The most common relationship is the Fibonacci ratio of 1/1 – equality. The monthly S&P 500 (SPX) chart courtesy of Trading View illustrates a presume Elliott five – wave motive pattern under development since March 2009. WhenContinue reading “The Next S&P 500 Resistance Level”
End of the Quarter – End of the Bull Market?
Today 06/30/21 the S&P 500 (SPX) made a new all-time high unconfirmed by the Nasdaq Composite (IXIC) and Dow Jones Industrial Average (DJI) – a “rule of the majority sell signal”. Additionally, the VIX made a higher bottom vs. the SPX new high, a bearish signal. For the last few months there have been severalContinue reading “End of the Quarter – End of the Bull Market?”
Historical Perspective of Stock Market Momentum
The momentum of stock markets can be examined by external indicators that measure price. Some of the external momentum indicators are Stochastic and RSI. Internal momentum indicators measure components of stock indices, such as Advanced/Decline lines and 52 – week Highs/Lows. The 06/28/21 blog examined recent deterioration of new – 52 – week highs forContinue reading “Historical Perspective of Stock Market Momentum”
Collapsing New – 52 – Week Highs
In the later stage of stock bull markets there’s usually a deterioration of stocks making new – 52 – week highs. At some point there are not enough stocks making new highs and the overall stock market goes into an intermediate degree correction or a bear market. The daily chart of NYSE New – 52Continue reading “Collapsing New – 52 – Week Highs”
Bearish Momentum and Sentiment Signals – Part Two
My original intention was for this blog to give a comprehensive view of evidence from all four market dimensions: price, time, momentum, and sentiment. There’s just too much data, so this post will focus on additional long- and short-term momentum/sentiment evidence. The weekly S&P 500 (SPX) chart courtesy of Trading View illustrates long-term momentum/sentiment signals.Continue reading “Bearish Momentum and Sentiment Signals – Part Two”
Bearish Momentum and Sentiment Signals – June 2021
June 15,2021 could be an important date in the history of the US stock market. In the first minute of trading the S&P 500 (SPX) made a new all-time high then went down. Also, the daily VIX recorded a higher bottom vs. the SPX new high. As noted in several blogs this is a reliableContinue reading “Bearish Momentum and Sentiment Signals – June 2021”
Four Dimension Trading 