Emerging markets look to be bottoming–Favor China, Brazil

in Technical Strategy

SPX managed to finish a very negative month on a positive note, as the last two trading sessions successfully cut its negative performance to just -6.0%.  Yet, as to whether the market has officially bottomed for the Winter, two areas look important on the upside:  1) 4519-20 would allow these two measured moves off the bottom to be Equal.  2) …

Two Steps Forward, One Step Back

in Technical Strategy

S&P’s upward progress now has reached its first meaningful level of upside resistance which might cause a temporary slowdown to this rally.  While SPX cash index looks to have barely eclipsed the important 4582 on a close, the NASDAQ and Russell 3000 have not yet risen above 1/10/22 intra-day lows.  Given the after-hours volatility, it’s not illogical to expect some …

Last couple weeks of January likely difficult before a trading low materializes

January 14, 2022 in Technical Strategy

Friday’s recovery looks to have happened directly following an Elliott five-wave decline from mid-Week. Thus, while many might feel emboldened that markets were able to stabilize, it’s likely that 4665-88 could contain any bounce before turning back lower to test this past week’s lows. My list of concerns is highlighted on the following page, but it’s worth pointing out that …