Friday, November 10, 2023

Charts Nov 10, 2023

SPX had the pullback day that was becoming inevitable. It could fall further, but could also bounce right back today. It’s impossible to tell. SPX is still well above its RevL with MoM going up. And the current move is only 5 days old.

Market situation:

* 281 SPX stocks in bullish mode = another downtick. A fall-back below 50% would not be a good omen.
* BullsPower at 9, BearsPower at 29. BearsPower is far from counted out at this point.
* 310 stocks with upward MoM (green dashed line). Down again and may drop below 50%.
* Market stays in the neutral semi-envelope. Watching the dW at 4307 for support.

* BMO climbs is about to top out at a high +3.8. The strong upward thrust stage appears to be over and now we get a pullback. How much of a pullback?
* ELC and BUD stay bullish.
* Closed back below the Repellor (4355), but not by much. Snake is catching up on prices and that means another push higher could suddenly come out of nowhere.

* SPX Rotator keeps rising, but the green component is slowing down a bit.
* Market fell back within the Bands. Textbook price action after a strong surge.

* SwX is green - bullish.
* Daily MoM is climbing and above + 6 already.
* The 4400 hurdle appears to have stopped the advance. We now have to see how much of a pullback this brings.
* When a move to new record highs has started, then any pullback early in that move can be surprisingly brief, as brief as one or two days, and then buyers step in... It’s too early to conclude already that’s what we have here, but better be ready for such a scenario.
* On a solid move above 4400 the road to new all time highs would be wide open.
* If on the other hand the recent October low gets taken out then the picture would become very ugly. This is what I call the “market decision tree” and this is something to have in the back of your mind in situations like this one.

* Icebergs algo shows ice, and a possible iceberg in the making. We have to wait and see.
* This algo is usually not the fastest, but it gives a kind of market image that other chart types do not give. More visual people tend to like it, others may consider it garbage. Both are OK.

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