Friday, October 20, 2023

Charts Oct 20, 2023

SPX had another ugly down day. We see some negative developments in several of our charts. Not the end of the world, but the continuing bear market scenario is gaining traction and would be firmly back on the table if the early October lows get taken out.

Market situation:

* 143 SPX stocks in bullish mode = big downtick. Falls back below the weekly bullish% and never got above 50%. That's ugly.
* BullsPower at 7, BearsPower at 36. BearsPower keeps the upper hand. Bulls mounted an effort last week, but did not make it.
* 185 stocks with upward MoM (green dashed line). Back below 50%. Ongoing downswing
* The dW is at 4388. A test of the wW at 4208 could be next.
* Note that the number of spBuy signals stays low. It will ramp back up some day and that's when there will be new chances to take. We have to wait.

* BMO is dropping.
* ELC keeps going up from its recent deep low.
* Repellor line is at 4395.

* SPX Rotator turns back down, mainly because the leading green component is weakening. It may only go down for a day or two (see Oct 2022), but that remains to be seen.
* This is a dangerous setup that could lead to further declines.
* Bands are showing no signs of bottoming out.

* SwX turns red - bearish.
* Daily MoM is going down and likely to fall back below zero. We need to wait for a next bottom in this indicator.
* Red trendline is getting tested as expected. Will it hold?

* Icebergs algo has been showing "green mountain" for a week, but never got above +4. It is now disappearing, which means a move to new multi-month lows is a scenario we can't discard yet.

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