On Monday June 13, 2022, the market fell nearly 4% and triggered our Market Score down to –6. The last time we saw this was on March 12, 2020. Continue reading
Since our update on 4/29/2022, the market continue to move downward and now reaching a yearly low. Our Market Score and Dow Theory Indicator turned negative on May 9, 2022. Continue reading
The S&P 500 lost -9% in the month of April and many indicators are pointing to a bearish market. Our Dow Theory Indicator (red line) has not turned negative yet. However, all major indexes are approaching their yearly low (see second chart below) and surely will trigger our indicator to move into negative territory of –1 and give us a sell signal.
Although an official sell signal hasn’t been triggered by this indicator, our read on the market breadth has been negative since the Market Score (green line) went into negative territory on February 1st. At the time, the S&P 500 was at 4,547 which is 10% higher than current level.
A buy signal occurs when market capitulates to the downside. A mark of –5 indicate a market capitulation to the downside and triggers a buy signal. Continue reading
There are no surprises that we all major indexes are declining. One of the factor we monitor is the market internal which look at the % from the one-year low. The chart below display the weakness which started when the Russell (RUT) broke below one-year low on 1/19/2022.
Our team will provide an update on the market based on Dow Theory this weekend.