Equity Momentum Faded As Last Week Progressed, Bearish Sentiment Not Elevated Enough To Help Out Bulls

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Equity bulls rallied the major US stock indices strongly early last week, but the momentum faded as the week progressed. One of the reasons for this is the lack of potential tailwind coming from heightened bearish sentiment. Equity bulls are … Continued

S&P 500 Declines 5.9% From July High Before Bids Show Up Last Fri At 4320s Breakout Retest – Relief Rally Ahead

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From its July 27 high through last Friday’s low, the S&P 500 quickly shed 5.9 percent. A relief rally looks imminent as equity bulls are not in a mood to let go breakout retest at 4320s. Not now anyway. Mid-to … Continued

S&P 500 Yearning Channel Breakout Amidst Overbought Condition, Even As Potential Squeeze Fuel Largely Used Up

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The S&P 500 is attempting to break out of a rising channel at a time when metric after metric is yelling overbought. Concurrently, the potential for short squeeze is less and less. On the S&P 500, equity bulls notched up … Continued

Info Tech Regains Go-To Status This Year, Even As Several Related Metrics Raise Yellow Flag

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Info tech has become a favorite this year. Bulls have turned a blind eye to several metrics including the sector’s contribution to S&P 500 earnings being much smaller than its share of market cap. Information technology has been a go-to … Continued

Equity Bulls Positioning For Seasonal Strength; Core PCE This Week, Inflation-Focused Fed Meets Middle Of Next Month

It is a seasonally strong period for stocks. Bulls are wasting no time getting ready for this. Stocks are rallying. In the best of circumstances, there is room to run still, with the caveat that an important inflation report is … Continued

S&P 500 Approaches Golden Ratio Of Jan Decline – Again – Shorts Likely To Get Active

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In a matter of three weeks last month, the S&P 500 gave back 12.4 percent. A .618 golden ratio of that decline lies at 4591, which was tested on February 2 and again on Wednesday. The 50-day lies just above … Continued

S&P 500 And Nasdaq 100 Equal Weights Meekly Break Out, Even As Market Cap-Weighted Cousins Itching To Do So

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Equal-Weighted Indexes pertaining to both the S&P 500 and Nasdaq recently broke out, although not decisively. Their market cap-weighted cousins could soon follow them. Should that happen, it is important to consider the vigor with which that happens. Equal-weighted indexes … Continued

Just Before Wed Selloff, Investors Intelligence Bulls Rose To 8-Week High – N/T Notwithstanding, Sentiment Remains Effusive L/T

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A day before Wednesday’s mini-collapse in major US stock indices, Investors Intelligence bulls reached a multi-week high. Some of these indices are near important support, providing bulls an opportunity to regroup. Longer-term, sentiment remains elevated. Equities took it on the … Continued