• 749 days Will The ECB Continue To Hike Rates?
  • 749 days Forbes: Aramco Remains Largest Company In The Middle East
  • 751 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,150 days Could Crypto Overtake Traditional Investment?
  • 1,155 days Americans Still Quitting Jobs At Record Pace
  • 1,157 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,160 days Is The Dollar Too Strong?
  • 1,161 days Big Tech Disappoints Investors on Earnings Calls
  • 1,161 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,163 days China Is Quietly Trying To Distance Itself From Russia
  • 1,163 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,167 days Crypto Investors Won Big In 2021
  • 1,168 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,168 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,171 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,171 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,174 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,175 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,175 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,177 days Are NFTs About To Take Over Gaming?
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

  1. Home
  2. Markets
  3. Other

Is the Stock Market Close to Deciding Whether to Give Us Another Leg Down?

Today's chart looks at "the change of balance fight" between how many stocks are shifting between being Very Strong in Strength, or Very Weak in Strength.

Today's Question: Can this "change of balance fight" chart analysis signal new down turns in the stock market?

For the answer, let's go to today's Lead/Lag Indicator chart of the "Very Strong stocks minus the number of Very Weak Stocks".

The chart below goes back to the beginning of 2008. For a down turn signal, a support trend line must be broken like the instances at the end of February, mid May, and mid August ... see the vertical red dotted lines (A, B, and C) for when this occurred. As you can see below, in all 3 cases, the market retreated afterwards.

Note also, that this Lead/Lag Indicator shows a series of lower/highs that continued to generate lower/lows with more damage occurring in the stock market. Also note how the lower/highs all failed at points 1, 2, 3, and 4 when they reached the red resistance line.

Notice that after the peak failure move at label 4, the Lead/Lag Indicator dropped like all the previous occasions. But, also notice that the Lead/lag Indicator has continued making higher/lows and higher/highs since bottoming out ... so it has been trending up.

Do we now get another drop with a lower/low that takes the market down another leg?

The answer will come soon because the indicator ended yesterday being very close to retesting the support line. If the support gets tested and breaks to the downside in the next few days, then that would be a condition favoring more downside action. (The Lead/Lag Indicator is posted on the paid website every day and will be reposted here in early December.)

 

Back to homepage

Leave a comment

Leave a comment