Last week we experienced a significant drop in the US stock markets from all-time highs. A sudden drop of this magnitude from all-time highs does not happen very often so it does make sense to put it into some context to see if it is simply another buying opportunity that is occurring or is it something different.
It certainly has been a good upward move in the North American markets since we posted our last blog reflecting the positive movement in October.
Last week we saw the US S&P 500 definitively breakout to the upside despite seeing some questionable earnings from a number of industrial companies during earnings season.
October does have a history when it comes to the stock market and it’s a history one would like to avoid. Just last year, the US S&P 500 had a pullback in October after reaching new highs in September.
Although many of our indicators descended to lower levels in August, the US S&P 500 has shrugged this resistance off and is looking to break out to higher highs.
Although the US S&P 500 made another new high near the end of July around 3,020, it didn’t last as the US President decided to issue a “Tweet” on August 1, 2019 suggesting more tariffs will be imposed on China effective September 1, 2019.
As we approach “earnings season”, we once again see the US S&P 500 at another all- time high above 2950 and our main coach, The Bullish Percent for the NYSE, reverses back up into X’s and is currently right at the mid-way point – 50%.
We have certainly seen some demand for stocks come back to market for the last week or so reversing much of the May downturn. We are starting to develop a much smaller trading range as we look to see if we have blue skies ahead or the potential for some storm clouds to develop. R
Just like September last year, we made another new all-time high in the S&P 500 in May around 2950 but could not hold it. Like last year, we have broken through support at 2800 again and are currently looking down at 2700 –a Point & Figure sell signal. A sustained reversal back above 2800 would be welcome news at this time.
As the North American markets moved back to their old highs from last year, we see an old theme play out – resistance...
Are we going back to the top? It’s been around 6 months since the S&P 500 peaked in September at around 2940 and subsequently descended to the 2350 level on December 24, 2108...
We continue to see a very impressive move from the bottom of the markets at the end of December as we try to get back to the top of the mountain. Back in December, the S&P 500 bottomed around 2350...