December 26, 2018
Mark Newton CMT, Newton Advisors, LLC
HAPPY HOLIDAYS and HAPPY NEW YEAR TO ALL !!
VIDEOS- Click below
Daily Technical Video- SPX and Crude
Last Week's Technical Webinar- 20 min- SPX analysis, TNX, DXY, NDX
Newton Advisors CNBC Appearance- Thursday 12/20/18
S&P Chart - Rally looks important as part of near-term bottoming process
S&P is experiencing its largest rally of the month of December 2018 today, and hourly charts show the area near 2420-5 to be important initial resistance to this rise. Overall, with breadth up more than 3/1 positive and 7 sectors up more than 2% on the day, i believe today should be important in creating a temporary low for stocks. However, it's tough to rule out a backing and filling of today and that this process might take some time until this initial downtrend is exceeded- This lies near 2435 and if exceeded on consecutive hourly closes, my thinking would be that a move back up to 2500 is underway. For now, important to take this rally one day at a time as we've experienced a huge 3% rip into an ongoing violent downtrend.
Daily S&P charts show today's rally to be regaining most of what was lost on Monday's trading, so despite this feeling like a big day.. and it is. Much more needs to be done before making too much of this as a bottom. However, breadth is convincing that today does have importance. Furthermore as we've discussed in recent days, sentiment, seasonality, cycles, oversold conditions and Demark indicators all highlighted this latter part of the week as having the potential for a trading low in stocks.