Today 01/04/23 all three main U.S stock indices ended the trading session above the prior trading day close. Surprisingly the Put/Call ratio (PC) also closed the day to the upside. The daily PC and S&P 500 (SPX) chart courtesy of Trading View illustrates their relationship since August of 2022. Investor’s Business Daily uses readings aboveContinue reading “Put/Call Ratio Rally”
Category Archives: Sentiment
Bear Panic Point
During 2022 the U.S economy suffered the highest inflation rates in 40 – years. The prior high inflation era lasted from 1968 to 1980, it’s likely the current cycle could continue for at least several years. The FOMC has been aggressively raising short – term interest rates and are likely to continue raising rates. TheContinue reading “Bear Panic Point”
Curious Sentiment Spikes – Part – Two
The 12/18/22 blog “Curious Sentiment Spikes” noted some fascinating sentiment signals. What happened today, 12/28/22 with the Put/Call ratio (PC) was extraordinary. The daily PC and S&P 500 (SPX) chart courtesy of Trading View shows some recent PC signals. The history of PC signals relative to the SPX since September are as follows. Investor’s BusinessContinue reading “Curious Sentiment Spikes – Part – Two”
Curious Sentiment Spikes
Recent movements in the S&P 500 Volatility Index (VIX) and the Put/Call ratio (PC) reveal some fascinating signals. The daily VIX and S&P 500 (SPX) chart courtesy of Trading View show a short- term signal and examples of intermediate – term signals. First a short – term signal. Note that on 12/12/22 the SPX hadContinue reading “Curious Sentiment Spikes”
Momentum and Sentiment Update – 10/14/22
Weekly momentum and daily sentiment indicators show that stock market bears could be losing strength. The blog “Dramatic Reversal – 10/13/22” noted that S&P 500 (SPX) daily Stochastic, RSI , and MACD all had bullish divergences. Longer – term momentum oscillators also have bullish divergences. The weekly SPX chart courtesy of BigCharts.com illustrate the additionalContinue reading “Momentum and Sentiment Update – 10/14/22“
Curious Non – Confirmation – Part Two
The 09/28/22 blog concluded with this note, “It’s too soon to declare a double bottom is in place vs. the June bottoms. Let’s see what the bears can do on 09/29/22.” Subsequently the S&P 500 and the Dow Jones Industrial Average (DJI) made new bear market lows while the Nasdaq Composite (IXIC) and Russell 2000Continue reading “Curious Non – Confirmation – Part Two”
Round Trip
On 09/23/22 the S&P 500 (SPX) came very close to important support at the 06/17/22 bottom. The SPX low on 09/23/22 reached a 98.4% retracement of the 06/17/22 to 08/16/22 rally. This round trip is very close to the Fibonacci ratio of 1/1 or 100%. A decisive break below the SPX 06/17/22 bottom could openContinue reading “Round Trip”
A Review of Momentum and Sentiment Indicators – 09/21/22
On the FOMC interest rate announcement day, US stocks continued to decline. The daily S&P 500 (SPX) – RSI bullish divergence was eliminated. This blog updates the actions of two internal momentum indicators. The daily chart courtesy of StockCharts.com examines US New Highs minus New Lows (5-day total – end of day) StockCharts.com symbol ($USHL5).Continue reading “A Review of Momentum and Sentiment Indicators – 09/21/22“
A Review of Sentiment Indicators – 9/16/22
A through analysis of any market requires the examination of all four market dimensions, price, time, sentiment and momentum. The weight of evidence could help determine a markets probable course. Each dimension has various factors to be weighed. This blog focus is on the sentiment dimension. The daily S&P 500 (SPX) chart courtesy of TradingContinue reading ” A Review of Sentiment Indicators – 9/16/22″
Excessive Bearish Sentiment
The 09/01/22 blog “Day of Decision -09-02-22” illustrated that The S&P 500 (SPX) 09/01/22 bottom was made without an hourly RSI bullish divergence. The hourly SPX chart courtesy of Trading View updates the action of the RSI indicator. On 09/06/22 the SPX broke below the 09/01/22 bottom. It also marginally broke below the rising trendlineContinue reading “Excessive Bearish Sentiment”
Four Dimension Trading 