{"id":51322,"date":"2020-01-26T22:01:35","date_gmt":"2020-01-27T06:01:35","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=51322"},"modified":"2020-01-27T21:04:07","modified_gmt":"2020-01-28T05:04:07","slug":"t2108-update-200124","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2020\/01\/26\/t2108-update-200124\/","title":{"rendered":"Resilience Cracks: Market’s Bearish Divergence Ends In Topping Pattern – Above the 40 (January 24, 2020)"},"content":{"rendered":"\n

AT40<\/strong> = 52.2% of stocks are trading above their respective 40-day moving averages (DMAs)
AT200<\/strong> = 58.2% of stocks are trading above their respective 200DMAs
VIX<\/strong> = 14.6
Short-term Trading Call<\/strong>: neutral<\/p>\n\n\n\n

Stock Market Commentary<\/strong><\/h2>\n\n\n\n

The stock market finally pushed into overbought territory<\/a> on Thursday, January 16th. The breakout quickly turned into a bust with AT40 (T2108)<\/a>, the percentage of stocks trading above their respective 40-day moving averages (DMAs), dropping for the next 5 trading days.<\/p>\n\n\n\n

\"AT40
AT40 (T2108) quickly dropped from overbought to a 7-week low.<\/figcaption><\/figure><\/div>\n\n\n\n

The stock market descended into a bearish divergence until Friday’s trading action pushed the S&P 500 (SPY) into a 0.9% loss. Even at the open the divergence worsened with the index gapping UP at first. Before that, the S&P 500 blissfully spent the week churning in a very tight range with a small down day, a flat day, and a small up day (Monday was a holiday in the U.S. for Martin Luther King’s birthday).<\/p>\n\n\n\n

\"The
The S&P 500 (SPY) lost 0.9% and at one point closed the gap from the day after the U.S.-China trade deal.<\/figcaption><\/figure><\/div>\n\n\n\n