S&P and Crude both testing key breakout levels!
The correlation between Crude Oil and the S&P 500 has been rather high over the last 100-days, as each looks to have peaked at the same time around the 1st of October at (1). After peaking together in October, Crude fell over 40% and the S&P nearly declined...
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Stock declines did not break 9-year support, says Joe Friday
We often hear "Stocks take an escalator up and an elevator down!" No doubt stocks did experience a swift decline from the September highs to the Christmas eve lows. Looks like the "elevator" part of the phrase came true as 2018 was coming to an end. The first part of...
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Triple Breakout Test In Play For S&P 500!
Is the rally of late about to run out of steam or is a major breakout about to take place in the S&P 500? What happens at current prices should go a long way in determining this question. This chart looks at the equal weight S&P 500 ETF (RSP) on a daily basis...
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The “Average Stock” is Facing a Big Test Here!
The Value Line Geometric Index tends to give investors a good idea of the health of the overall market. It is an equal-weighted index with a broad swath of stocks that gives investors an idea of how the “average stock” is performing. The Value Line Geometric formed...
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Gold & Silver Testing Important Breakout Levels!
Gold and Silver from a long-term perspective have created a series of lower highs over the past 8-years. Will 2019 bring a change to this trend? A big test is in play! Gold since the lows in 2016 has created a series of higher lows, while Silver may have created a...
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Homebuilders Set To Deliver “Canary” Message Again!
There are often market “tells” that occur long before the beginning of a broader stock market rally or correction. And they tend to be sectors/areas of the market that are more sensitive to the economy… for instance, small cap stocks, tech/growth stocks, housing...
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S&P bulls hope Trump rally doesn’t end here, says Joe Friday
Could Presidents Trump's election rally be in trouble? We could find out very soon, says Joe Friday This chart looks at the S&P 500 and the VIX index over the past few years. We applied Fibonacci to the price when President Trump was elected and the 2018 highs....
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Are the Home Builders Signaling Another Financial Crisis?
Is 2018-2019 going to be a repeat of the 2007-2008 crisis for the home builders? One indicator/index to watch is the Dow Jones Home Construction Index. This index experienced a bearish divergence just before the 2007 stock market highs. Once it kissed the underside of...
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Time for Mid-Cap Stocks to Outperform Broader Market!
Mid-cap stocks have been underperforming large-cap stocks for quite some time. Perhaps, this is a reason for the malaise in the broader market over the past year. Let’s take a closer look at what’s happening. In the chart below, we look at the performance ratio of...
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S&P 500 Testing Historical Kiss Of Resistance
In February of 2018, the S&P created a low, which was tested again as support a couple of months later. These two lows became the lows of a new trading range that was forming, with support at (1). Weakness in December saw support line (1) break, which was a...
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