Major Market Swing Signal (End of Day) Thursday 1-26-23
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The percentage of Stocks in a Bullish Upswing for all Categories are
83% of the Dow Jones is on an Upswing
78% of the S&P 100 is on an Upswing
94% of the Nasdaq 100 is on an Upswing
82% of all Three Indexes Top Holdings is on an Upswing
All Three Categories have had a Very Bullish Swing Signal for Three Days Now, which is showing some strength.
The Nasdaq 100 is Extremely Bullish at 94%, it is starting to get to a level where pullbacks have occurred. I'm a little concerned about this because the Nasdaq is forming a Breaish Divergence with our Market Breath Indicator. This Bearish Divergence usually forms when the Index is about to TOP and PULL BACK. We must be careful
The bottom line is that the market is at a critical point in time and at a critical level on the Charts.
The Chart Structure for the S&P 500 and the SPY is showing a break above the Key Overhead Resistance can it hold and find support above these levels is what we must look for?
A picture is worth a Thousand Words
In our opinion below are the MOST IMPORTANT CHARTS IN THE STOCK MARKET at this TIME
Updated Charts as of Thursday 1-26-23 Market Close
Below is a Daily Chart of the S&P 500 Index Notice the Pirce Action is now above the Downward Trending Trendline and the Horizontal resistance line (in red). Also, Notice that the price is above the top of the High Volume Price Level. Will the Price stay above these levels, If not I Prices may move LOWER
Below is a Weekly Chart of the SPY (the ETF that tracks the S&P500). Notice that on the Longer-Term chart of the SPY, the Price Action has moved above the MULTIPLE Downward Trending Trendlines. Price is also slightly above the 404 horizontal Resistance Price Level in (red)
Below is a Daily Chart of the SPY (ETF that tracks the S&P500 Index). On this chart, we can clearly see that Pric is now above the downward trending trendlines and the Internal Trendlines, also the 405.02 Fractal. It stopped at this level almost to the PENNY
On FRIDAY at 8:30 am we will get the PCE report (see Economic Reports below). This is the Federal Reserve's key report on Inflation. How the market reacts to this report will be Key, and may determine the direction of the market until the Federal Reserve Interest Rate Decision and Speech on Wednesday next week ( February 1, 2023)
If the market reacts positively to the PCE Report and stays above the Key levels on the charts above we may move higher until the Fed Speech
Friday, Jan 27, 2023
@ 8:30 am Core PCE Price Index (MoM) (Dec) (This could be a market mover)
@ 8:30 am Core PCE Price Index (YoY) (Dec) (This could be a market mover)
@ 8:30 am PCE Price index (YoY) (Dec) (This could be a market mover)
@ 8:30 am PCE price index (MoM) (Dec) (This could be a market mover)
@ 8:30 am Personal Income (MoM) (Dec)
@ 8:30 am Personal Spending (MoM) (Dec) (This could be a market mover)
@ 10:00 am Michigan 5-Year Inflation Expectations (Jan)
@ 10:00 am Michigan Consumer Sentiment (Jan) (This could be a market mover)
@ 10:00 am Pending Home Sales (MoM) (Dec) (This could be a market mover)
@ 3:30 pm CFTC Nasdaq 100 speculative net positions (This could be a market mover)
@ 3:30 pm CFTC S&P 500 speculative net positions (This could be a market mover)
The Bulls are fighting to gain control and the market is in a New Confirmed Uptrend, Market Breadth is Strong, but it's starting to get near extremes (the market can top out at these levels), and Volume is coming into the market slowly.
We are in earnings season so we must be careful