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”
Category Archives: 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”
Next Wave Down Likely Underway 05-19-21
The S&P 500 (SPX) opened the 05/19/21 session down sharply and below the supposed “b” wave low of a rising Elliott wave – Single Zigzag. A 25% short of non-leveraged SPX related funds was initiated at the opening SPX price of 4073.77. Use a move above SPX 4207.90 as the stop loss for the 25%Continue reading “Next Wave Down Likely Underway 05-19-21”
Bitcoin Relationship to US Stocks
The 02/15/21 blog “Using Bitcoin as an Indicator for the US Stock Market” examined the relationship between Bitcoin in US Dollars (BTCUSD) and the S&P 500 (SPX). The weekly BTCUSD/SPX chart courtesy of Trading View updates the relationship. The most striking feature of this chart is the dramatic BTCUSD bull move from March 2020 toContinue reading “Bitcoin Relationship to US Stocks”
Lack of Harmony
The two-day rally of US stocks looks impressive in terms of the S&P 500 (SPX) which has risen 69% from its late 05/12/21 bottom. However, the Dow Jones Industrial Average (DJI) has climbed 58%, and most significantly the Nasdaq Composite is up only 37%. The 30 – minute chart courtesy of Trading View illustrates theContinue reading “Lack of Harmony”
The Amazing Amazon.com
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”
Bearish Rule of the Majority Signal
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”
Stocks Rollover
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”
Four Dimension Trading 