Friday, January 12, 2024

Charts for Jan 12, 2024

SPX made another attempt to climb above 4800 and was rejected. Several of our slower indicators have now peaked out and that means it is becoming harder to keep this rally going without going through a more serious pullback or pause first. The longer it takes to get above 4800, the more traders will start taking note and do some selling, if not reverse their positions.
The topic of trading around new all time highs is very interesting and here you can find an article I wrote in 2017 on that topic:

Market charts:

* 356 SPX stocks in bullish mode. Serious downtick on an unchanged day. This is the lowest bullish% since mid-November.
* Fewer stocks are keeping the index up. That's a concern.
* BullsPower at 40, BearsPower at 5. BearsPower is gradually creeping up.
* The number of stocks with upward MoM (dashed green line) stays below 50%. It hasn't been above 50% since mid-December. * The daily Watershed (dW) is at 4681.

* BMO goes up. Will it climb back above the zero line?
* ELC keeps going down.
* Repellor is at 4663.

* SPX Rotator keeps declining.
* The green component is flattening out at a relatively low level. It's quite possible that both the red and the green line will converge towards the zero line.
* The Bands are flattening out.

* SwX is yellow - neutral.
* Daily MoM goes up, but will it gain any traction?
* The middle blue line continues to get more touches. But getting back above it appears not very likely. So, I think the base scenario is more consolidation, which could go on for several months.
* 4800 becomes a tougher hurdle to take with each failed attempt now. And on the downside it's probably 4600 that would offer support if stocks start a downswing here.

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