Lee AdlerFREE REPORT –
The S&P 500 has rallied relentlessly to all time highs for 3 months. A broad based bull? Nope. Mostly Mag 7. Or rather, Towering Two.
Here’s a graphical essay that speaks for itself.
Screen results this week finally reversed the recent string of small losses as I continued to utilize weekly charts and signals to select picks, as opposed to using triggers from only the most recent day.
The market remains in a narrow, liquidity-driven uptrend, fueled by residual cash reserves and dominated by the Mag 7.
Despite new short-term highs, the S&P’s rally remains precarious and thin. Divergences across indices, failing cycle thrust, and deteriorating cycle breadth indicate a market under internal stress. The market has arrived at the precipice of the liquidity cliff.
All but a couple of shorts on the list were closed last week and none were added this week because the screens identified no good short-term setups.
Short-term cycle corrective phases have begun just as the market approaches critical resistance. Sell signals are multiplying. The uptrend remains intact — but it may not survive another bad day or two.
All but a couple of shorts on the list were closed last week and none were added this week because the screens identified no good short-term setups.
The S&P 500’s vertical meltup paused at a key regression channel centerline, as Monday’s downtick now threatens to become a reversal. Short-term cycles are peaking, the six-month cycle remains on a sell signal, and long-term projections face major internal conflict. The Cycle Wave Composite has reached levels that marked previous tops. Breadth is weakening. If xxxx breaks, it would confirm a major top.
Here are the specifics on what you need to know and to look for.
The Technical Trader Market Update will be posted on Tuesday again this week. I had intended to return to regular weekend or Monday morning postings…
The list will be 100% short this week. There are 3 new picks, all shorts.
The S&P 500 has broken out into a meltup phase with a massive V-bottom base breakout targeting xxxx if sustained. Short-term cycles align for xxxx xxxx through xxxx xxxx, with 6-month cycle projections reaching xxxx. However, narrow breadth and weak cycle screening data suggest caution, as a few large-cap stocks drive gains while underlying breadth and momentum remains weak.
Here are the specifics on what you need to know and to look for.
The Technical Trader Market Update will be posted on Tuesday again this week. I hope to return to regular weekend or Monday morning postings next…