Major Market Swing Signal (End of Day) Thursday 1-12-23
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The percentage of Stocks in a Bullish Upswing for all Categories are
80% of the Dow Jones is on an Upswing
76% of the S&P 100 is on an Upswing
81% of the Nasdaq 100 is on an Upswing
77% of all Three Indexes Top Holdings is on an Upswing
The Major Indexes closed somewhat Strong today. All three of the Major Indexes had a Key Reversal Day with Above Average Volume, Which is a very good sign and an indication that the market could move higher
All the Major Indexes are now trading above their 5, 9-day, and 21 Day MA's on the daily charts. The S&P500, Nasdaq, and IWM are testing the Long term Moving Averages (150 Day and 200 Day).
All Three of the Major Indexes are now testing resistance at the long-term downward trending trendlines on the Daily and Weekly Charts. These trend lines have been in place forthe whole year of 2022.
Each time the Indexes tried to break above the trendline it has gotten rejected. The indexes got rejected at this long-term downward trending trendline THREE times in 2022.
The market is now testing the trendline again for the 4th time. The question is will it find resistance again and get rejected or will it finally break through and close above
This Rally is moving up on Good Volume this is a form of Strength. Also, the Market Breadth (a look under the hood) is very Strong. We have to keep an OPEN MIND. It's possible the market will move higher in the short term, even though I don't trust it
The Advance-Decline Diff Invisible Chart Indicators is Very Positive. The Green Line is above the Yellow Line and Red Line. Also, the Green Line is above Zero on the Dow Jones, S&P 500, and Nasdaq.
Like I said in the Group Text keep a close eye on the VIX it is at extremes now, whenever the VIX started trading below 20 last year (2022) the Market TOPPED OUT SHORTLY AFTER). The VIX is at around 18 now
The VIX closed down over 10% today. When the VIX closes Down 10% or more there is an 85% chance that the Market close down within the next TWO days
TOMORROW IS THE START OF EARNINGS SEASON WITH THE BIG BANKS REPORTING EARNINGS BEFORE THE MARKET OPENS. THESE WARNINGS REPORTS CAN CAUSE THE MARKET TO DROP OR POP