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

All Hail NVIDIA and A New Market Call – The Market Breadth

All Hail NVIDIA

Stock Market Commentary There is a deepening irony in my on-going bearishness on the stock market. The sector most visibly responsible for the anti-bearish animal spirits leaning against poor market breadth is the same sector I remain unapologetically bullish about: Artificial Intelligence (AI). The ironic contrast was in full display last week as the bullish … 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

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

Little Time to Rest for the Oversold Bounce – The Market Breadth

little time to rest (Credit: animal-tigers-running-wallpaper-3 by Farmington Strength on Flickr)

Stock Market Commentary Downtrends are over. Bullish breakouts abound. Sellers got one chance last week to try to keep the cork in the bottle of the oversold bounce, but they failed. The stock market insisted on pushing right through. With little time to rest, the S&P 500 and the NASDAQ ended the week with major … Read more

How to Trade A Bear Market Intrusion On An Oversold Period – The Market Breadth

bear market intrusion

Stock Market Commentary A bear market intrusion upset the dynamics of this oversold period. The NASDAQ is back in bear market territory. Both the NASDAQ and the S&P 500 broke down below their respective 200-day moving averages (DMAs) (the blue line in the charts below) and entered “correction” territory which is 10% below the 52-week … Read more

Oversold Bounce Sends Signs of Life for Stocks – The Market Breadth

Oversold Bounce Sends Signs of Life for Stocks (Credit: Google Workspace Labs, AI-generated image)

Stock Market Commentary Get used to the sentiment shifts. One day the stock market went oversold and over hard. The next day, an oversold bounce shows signs of life for stocks. In particular a classic bottoming signal came in the form of the “hammer” candlestick. Together, the bounce from oversold territory and the bottoming hammer … Read more

A Stalemate Locks In the Pricing Action – The Market Breadth

stalemate (Credit: stalemate by ALEXMOFFAT1 on Flickr)

Stock Market Commentary Last week was a time to avoid staring too hard at the day-to-day pricing action. The major indices were pretty much locked into a stalemate. Two breakouts were followed by two breakdowns. From a wider perspective, a stalemate has effectively been in place since mid-August. Despite my expectations, last month’s Jackson hole … Read more