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”

Could US Stocks Rally Until August 2021?

Typically, “window dressing” occurs on  the last trading day of a quarter. Stock fund managers buy top performing stocks on the last trading day of the  quarter to show they have these winners in their portfolios. This usually causes an upward move in at least one of the three main indices.  The S&P 500 (SPX)Continue reading “Could US Stocks Rally Until August 2021?”

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”

Broad Stock Market Top?

Stock markets are ruled by the forces of optimism and pessimism, some would say hope and fear.  Pessimism/fear is more intense which is why stocks and stock markets generally fall faster than they rise. Intensity also creates distinctive bottoms, the March 23, 2020, bottom is a perfect example, the vast majority of US stock indicesContinue reading “Broad Stock Market Top?”

Powerful Bearish Sentiment Signals

Investors who use margin debt pledge their securities in exchange for loans from brokers to buy more securities or sell short a stock. Usually, total margin debt increases as stock markets rise and decline in stock bear markets. The chart of margin debt compared to the S&P 500 (SPX) from Advisor Perspectives shows the relationshipContinue reading “Powerful Bearish Sentiment Signals”