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S&P stalling near 2874 while MID, TRAN, SML have broken out

Tuesday Technical Video



Minor pullback in the last hour after Cohen plea deal and S&P reversing from 2874, but in general.  we’re seeing many indices move back to new highs today.  Which is generally a positive for intermediate-term.   – Small caps, mid-caps.. transports..  -  SML, IWM, MID, TRAN back at new all-time highs The NASDAQ has lagged lately.. and below July highs-   Near-term.  While new highs have expanded.. they’re still at relatively low levels..  and McClellan’s Summation index is way below levels seen back in June.   So the price action back at new highs doesn’t give a complete picture.  But yet still important to note.


RE:   S&P-  After 4 straight days of gains, and 70 points higher,  Still no evidence of any reversal .. and prices have now reached 2874, which was the upside target when 2863 was taken out and now just 16 points under the all-time highs from late January.  This has Gann SQUARE of 9 relationships to the 8/15 bottom  and should have some type of importance today, but we’ll see-  As charts of the S&P show below..  this area “should” have importance based on the relationships of former peaks..  but we’ll need to see some evidence of prices turning back lower to break this trend.  Until that happens, it should be more important just to focus on what’s working and whats not.  Breadth is 2/1 positive and the Defensives are being hit today.. while Energy and Discretionary are leading the charge.


Technology is a relative underperformer, up 0.50% and the Dollar has begun to turn down more quickly-  Yields have attempted to recoup yesterday’s drawdown-  EEM outperforming again today and gains from both WTI and Gold are following through  but movement up above 68.25 needed for bullish stance on WTI CRUDE while Gold (spot) will need to get above 1213 after all the failed rally attempts. 

But downturn in Dollar today looks serious and if/when rates turn down, this should be quite positive for the Metals

It is a positive to have SML, IWM, MID, TRAN back at new all-time highs on an intermediate-term basis-   The NASDAQ has lagged lately.. and below July highs



Stocks making good progress that are attractive Technical longs:    HEAR, TLYS, TEAM, HRTX, I,  MDT

Stocks that are breaking down that are worth mentioning-   AMTD, ETFC, SCHW, HPE

Many of the bullish leaders today in SPX are not making too much progress technically-  MU, PHM, LEN, DHI for example are all just consolidating within bearish trends and bouncing



S&P_ HOURLY_  see prices up near the apex of this move from highs and lows-   this structure would seem to offer limited upside, but movement UNDER 2850 needed for any confidence in shorts





S&P-  120 min charts-   Prices at 2874-80  are thought to be at levels to sell-  and exhaustion signals are present per counter-trend systems like Demark’s TD Sequential/TD Combo






MID-   Movement to new highs is a positive for intermed. Term for MID-CAPS