• 340 days Will The ECB Continue To Hike Rates?
  • 340 days Forbes: Aramco Remains Largest Company In The Middle East
  • 342 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 742 days Could Crypto Overtake Traditional Investment?
  • 746 days Americans Still Quitting Jobs At Record Pace
  • 748 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 751 days Is The Dollar Too Strong?
  • 752 days Big Tech Disappoints Investors on Earnings Calls
  • 753 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 754 days China Is Quietly Trying To Distance Itself From Russia
  • 755 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 759 days Crypto Investors Won Big In 2021
  • 759 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 760 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 762 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 762 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 766 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 766 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 767 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 769 days Are NFTs About To Take Over Gaming?
Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

  1. Home
  2. Markets
  3. Other

The State of the Trend

One of the most fascinating things about market breadth is that, despite all the talk about high frequency trading (HFT) and all the distortions attributed to the endless stream of liquidity pumped into the system, it never wavers from its cyclical ways.

Based on our analysis of this behaviour, we stated last week that the market breadth pendulum has swung back close to the overbought zone, and it's time to expect a consolidation of the recent up move.

The pull-back started on Monday, and the SPX spent most of the week back inside the Cyprus box:

SPX Chart

The DJIA remains strong, and hasn't even tested the breakout level yet:

Dow Jones Industrial Average Chart

The Qs remain in the weakest position, but managed to claw their way back within the ascending wedge:

QQQ Chart

They may be getting some help from AAPL soon, as the stock has reached the strong support zone we identified here months ago:

AAPL Chart

The long-term channels continue to point firmly up:

SPX Long Term Channels Chart

and our trusted market breadth indicator suggests that the tide should be turning again:

CIT Dates Chart


Back to homepage

Leave a comment

Leave a comment