Join Larry McMillan as he discusses the current state of the stock market on January 25, 2022.
The stock market has finally succumbed to months of negative internals, and now the large-cap indices are following the "troops" lower. $SPX has broken down below the bottom of the trading range, violating support at 4500. Not only that, but it has closed below the December lows, which is another longer-term negative for the market.
This decline has exacerbated oversold conditions in many areas, though, so expect violent oversold rallies within what is now a bearish downtrend.
Join Larry McMillan as he discusses the current state of the stock market on Monday, January 17, 2022.
Join Larry McMillan as he discusses the current state of the stock market on Monday, January 10, 2022.
The fact that $SPX and the Dow ($DJX) are out-performing just about everything in the universe is well-known, but there doesn't seem to be any letup in the wide divergence between market internals and $SPX. If $SPX falls back below support and closes below 4690, that will remove the "bullish" status from the $SPX chart. There would still be support at 4500, which is the lower end of that trading range.
Join Larry McMillan as he discusses the current state of the stock market on Monday, January 3, 2022.
Join Larry McMillan as he discusses the current state of the stock market on Monday, December 27, 2021.
Stocks plunged over 90 points at one time on Monday, December 20th. However, that produced enough of an oversold condition once again, that buyers stepped in and have taken $SPX all the way back to the top of its trading range, at 4700. The lower end of the trading range is 4500 (see Figure 1), although there is also support at this week's lows, 4530. $SPX has tried numerous times to break out over 4705 and hold those gains but has been unable to do so. But market internals have improved somewhat, so maybe this time it will happen.
Join Larry McMillan as he discusses the current state of the stock market on Monday, December 20, 2021.
$SPX is in a very volatile trading range, as $SPX has traversed the 4600 to 4700 area several times. Each time it declines, oversold conditions arise, spurring a rally. But then it fails at the top of the range. 4600 is the nearest support, with support at 4500 and 4300 below that.
