A Curious Break in the Trading Action – The Market Breadth

A Curious Break in the Trading Action - The Market Breadth

Stock Market Commentary A curious break in the trading action unfolded as financial markets wrestled with two “disappointing” inflation reports. Both the CPI (consumer price index) and wholesale inflation (the producer price index or PPI) came in slightly higher than “expected” (headline and core). The data just tell me expectations are unrealistic or at best … Read more

Is the Latest Topping Pattern Another Tease for the Bears? – The Market Breadth

Is the Latest Topping Pattern Another Tease for the Bears - The Market Breadth

Stock Market Commentary Is another tease for the bears underway? The current bullish rally has included so many temporary bearish signals that I had to stop using baseball metaphors to call strikes. Now, the latest bearish signal looks like the most ominous yet. In the wake of February’s job report, price action delivered a wicked … Read more

A BE READY Kind of Day in the Stock Market – The Market Breadth

A Be Ready Kind of Day in the Stock Market

Stock Market Commentary Right after the stock market tempted me to flip from bearish to neutral, January’s CPI (consumer price index) turned brought the bears rushing back to the scene. Inflation’s fizzle turned to sizzle, and the technical picture of the stock market almost flipped on its head. The charts say it all – the … Read more

A Sharp Contrast Between Two Truths of the Stock Market – The Market Breadth

A Sharp Contrast Between Two Truths of the Stock Market – The Market Breadth

Stock Market Commentary Instead of climbing a wall of worry, the market is climbing a wall of frustration (I stole that from a friend of mine). No matter what economic indicators bears stare at to declare impending doom, the jobs market just keeps coming in hot month-after-month. While a widening swath of stocks are breaking … Read more

The Week’s Rally Failed to Erase Key Bearish Trading Signal – The Market Breadth

The Week's Rally Failed to Erase Bearish Trading Conditions - The Market Breadth

Stock Market Commentary A bearish divergence is well underway in the stock market. While the S&P 500 and NASDAQ rally, a key bearish trading signal persists in market breadth. The previous week, market breadth created a strong bearish signal by slicing below the overbought threshold. This key bearish trading signal was reinforced by last week’s … Read more

Stock Bulls Taunt Suddenly Hesitant Bears – The Market Breadth

Stock Bulls Taunt Suddenly Hesitant Bears

Stock Market Commentary A decisive end to the extended overbought period signaled the arrival of bearish conditions last week. Bears boldly sold for one more day before a “stock bulls taunt” forced suddenly hesitant bears into a partial retreat. A sharp market divergence is now taking hold. While the major indices rallied off support and … Read more

Stocks Narrowly Avoid Bearish Conditions – The Market Breadth

Stocks Narrowly Avoid Bearish Conditions - The Market Breadth

Stock Market Commentary Last month, the stock market seemed to conclude that the threat of inflation had all but disappeared. Given the resulting celebration is one of the key drivers of the current extended overbought rally, today’s report on December’s CPI (Consumer Price Index) took on some significance. So when CPI missed “expectations” on the … Read more

Overbought Conditions In Peril As New Year Weakness Continues – The Market Breadth

Overbought Conditions Continue Despite On-Going Weakness - The Market Breadth

Stock Market Commentary As new year weakness continues in the stock market, a serious tension has emerged in the message of the market between profit-taking versus a sustained top. An extended overbought period raises the stakes for the resolution of this tension. As long as the stock market remains overbought, I will assume the current … Read more

Profit-Taking Or A Top? An Overbought Market Roundtrips – The Market Breadth

Profit-Taking Or A Top - An Overbought Market Roundtrips – The Market Breadth

Stock Market Commentary Exactly two weeks ago, the stock market fell out of bed. I called the abrupt move the rally’s third strike. However, buyers jumped right back into the fray and overcame that third strike with a rally right to the second to last trading day of the year. So far, the new year … Read more

A Remarkable Year Ends With Signature Stock Market Moments – The Market Breadth

A Remarkable Year Ends With Signature Stock Market Moments - The Market Breadth

Stock Market Commentary Signature stock market moments capped a remarkable year for the stock market. Two months of nearly relentless buying delivered a stunning 70% of the gains for the S&P 500 in 2023 after bulls exploded out of oversold trading conditions. Housing-related stocks soared even more as financial markets celebrate the presumed end of … Read more