Friday, March 8, 2024

Charts for Mar 8, 2024

Another surge to a new record high for SPX.
Participation (see bullish% chart) is also improving a bit. This market has continued to defy the gravity of multiple bearish divergences, weak participation, very stretched valuations, and overbought readings in many indicators. But sometimes buying keeps begetting more buying, and there is no way to tell when that will end. This will definitely be a rally for the history books and is unprecedented by several measures. More than 1 or 2 serious down days is all the downside we can get so far this year. Intuition would suggest that this MUST end. But there is also a possibility that the rally will accelerate even more and create a blow-off peak first. Check out the Nasdaq in the late 1990s if you were not around at that time.

Market charts:

* 356 SPX stocks in bullish mode. Uptick and trying to break above the weekly bullish% for the 1st time since early January.
* BullsPower at 44, BearsPower at 9. BullsPower at a new multi-month high.
* 256 stocks with upward MoM (dashed green line). Chopping around 50% = weak.
* The daily Watershed (dW) is at 5061, with the ceiling of the Envelope at 5192.

* BMO goes down, with multiple bearish divergences.
* ELC goes down with bearish divergence.
* Repellor is at 4963 and has not been tested since November.

* SPX Rotator turns back up. But green component continues to lag.
* The market gets back above the Bands. Runaway rally mode resumes?

* SwX is red - bearish.
* Daily MoM goes down, with a double bearish divergence.
* The pale green trend channel keeps containing the price action and is not even being challenged all that much. So easy.

* Icebergs algo has clocked in another bout of "gold on the mountain" but at a low level and still has "lava".
* Hot market conditions continue and green mountain is back above +4, which is a healthy bullish level, after some doubt in late February.

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