Category Archives: Momentum

In the last few months  there have been several illustrations of Ending Diagonal Triangles (EDT) illustrated on this website.  The main reason is that this structure appears as R.N  Elliott stated, “after the market has moved too far too fast”. What’s happened with the main US stock indices since March 2020 is definitely too farContinue reading “On the Verge of a Mini-Crash?”

Today 08/05/21 the Nasdaq Composite made a new all-time high unaccompanied by the other two main US stock indices, S&P 500 (SPX) and Dow Jones Industrial Average.  The SPX all-time high was at 4429.97 made on 07/29/21 , todays SPX high was 4429.55.   The daily chart of Nasdaq – New 52 – weeks highsContinue reading “Diminishing New – 52 – Week Highs”

For several months the US stock market has had several bearish momentum divergences, both external and internal.  External moment can be gauged by price oscillators such as Stochastic. Internal momentum can be viewed by examining  advancing issues vs. declining issues. Since February 2021 the Nasdaq -Advancing – Declining Issues ($NAAD) has had bearish divergences vs.Continue reading “Another Bearish Divergence”

After sixteen-months of steadily rising stock prices in which the largest correction was only 10%, complacent bulls probably think it will never end.  For analysts that study all four market dimensions, in particular momentum-  realize its more like a hidden bear market.   The daily Nasdaq –  Advance – Decline Issues ($NAAD) chart courtesy ofContinue reading “The Never-Ending Bull Market”

After sixteen months of a relentless bull market, stock fund managers have learned the lesson: when stocks decline go in and buy.  The hourly S&P 500 (SPX) chart courtesy of Trading View illustrates the recent action. The SPX move  up from the 07/19/21 bottom is the fastest and farthest rally since the move  from theContinue reading “Buy the Dip”

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”

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”

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”