Connect with us

Hi, what are you looking for?

Balance And Charge – Investing and Stock NewsBalance And Charge – Investing and Stock News

Stock

Major Stock Indexes Are Faltering

At the end of November the Dow Jones Industrial Average ETF (DIA) advanced just above +20% from its October low and officially entered a new bull market; however, technically, an intermediate-term rising trend had not been established. There is a bottom above the September bottom (green arrows), but there is not yet a top above the November top. In fact the last top is lower than the November top, and the next thing we are looking for is for price to fall below the December bottom to establish a new falling trend. The PMO (Price Momentum Oscillator) has topped and crossed down through the signal line (PMO SELL Signal).

Other major indexes have also faltered. The S&P 500 (SPY) never made it to bull market territory. It also failed to establish a new rising trend, and its PMO has topped.

The S&P 400 Mid-Cap (MDY) actually did make a higher top, but it has turned down and formed a bearish rising wedge.

The S&P 600 Small-Cap (IJR) is similar to SPY and DIA.

While the broad market has rallied off the October lows, the Nasdaq Composite (ONEQ) has been dead in the water, rallying only +11%. The best that can be said about at present is that it has formed a bullish falling wedge.

Conclusion: While the Dow managed to advance into bull territory, other major indexes remain in bear markets. The enthusiasm that helped the market rally out of the October lows is fading, and current signs are that the rising trend will be abandoned and a new falling trend established. It is not too late for the bull to be revived, but at this point the market appears to be turning down.

Watch the latest episode of DecisionPoint on StockCharts TV’s YouTube channel here!

Technical Analysis is a windsock, not a crystal ball. –Carl Swenlin

(c) Copyright 2023 DecisionPoint.com

Helpful DecisionPoint Links:

DecisionPoint Alert Chart List

DecisionPoint Golden Cross/Silver Cross Index Chart List

DecisionPoint Sector Chart List

DecisionPoint Chart Gallery

Trend Models

Price Momentum Oscillator (PMO)

On Balance Volume

Swenlin Trading Oscillators (STO-B and STO-V)

ITBM and ITVM

SCTR Ranking

Bear Market Rules

DecisionPoint is not a registered investment advisor. Investment and trading decisions are solely your responsibility. DecisionPoint newsletters, blogs or website materials should NOT be interpreted as a recommendation or solicitation to buy or sell any security or to take any specific action.

You May Also Like

Economy

“The vast majority of commercial and industrial establishments are now working not for the free market but for the government.” V.I. Lenin, State and...

Economy

As I write in the introduction to a Southern Economic Journal symposium (commemorating the anniversaries of Ludwig von Mises’s “Economic Calculation in the Socialist...

Editor's Pick

Creating a comprehensive Internet of Things (IoT) platform to enable the transformation to a smarter, more sustainable planet Transaction brings together the ultra-low power...

Economy

There’s a fault line permeating America’s criminal justice system—a built-in defect that the government can use to steal your property, even if you’re innocent....

Disclaimer: Balanceandcharge.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


Copyright © 2023 Balanceandcharge.com