The ‘inflating parabolic bubbles’ for the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite reached their all-time intraday highs of 26,616.71, 2,872.87 and 7,505.77 on Friday, Jan. 26, as the ‘melt-up’ to these closes warned of potential market peaks. Dow Transports and Russell 2000 were laggards setting their highs of 11,423.92 on Jan. 16 and 1,615.52 on Jan. 24, respectively. The correction ended two weeks later, on Feb. 9, ...
If you have been paying close attention to the stock market, market internals/breadth, and bonds for the past three months, you’ve likely come to the same conclusion. The US stock market is showing signs of severe weakness with the market breadth and leading indicators pointing to a sharp correction for stock prices. With fewer stocks trading above their 50 and 200 day moving averages each week, while the broad market S&P 500 index continues to rising, this bearish divergence ...
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