HE says to maintain course, and so I shall as so guided below ...
quaint tradition taught me not to fade McHugh
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For those of you with busy schedules, here is an executive summary (for a more intense detailed report, with charts, more statistics, trend analysis, and extraordinary developments, click on the U.S. Weekend and Daily Market Forecast Reports at the website).
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Today's Market Comments:
Stocks tried to rally Monday, March 14th, but selling pressure proved to formidable, and stocks gave up the intraday gains. The Industrials ended the session flat, while the S&P 500 fell 31, the NASDAQ 100 lost 255, Trannies gave up 101, and the Russell 2000 fell 38.
The S&P 500 generated a Death Cross Monday, joining the Industrials and NASDAQ 100. New Lows rose sharply to 724. The Industrials forms a Shooting Star Candlestick pattern, which is often followed by declines over the next day or two.
A Death Cross is where the 50 day Moving Average drops below the 200 day M.A. This is a dangerous development, and is considered at least an Intermediate-term (6 to 12 months) Bear Market signal. It is a factor that could trigger computer selling. Many consider this a longer-term Bear Market signal. The NDX decline from its all-time high in November 2021 has already seen a 22 percent crash.
Hong Kong's HSI is getting crushed over the past two days, down 1,600 points, almost 8 percent in two days. With international markets interconnected, this is worth watching. In our weekend International newsletter we noted there are no less than eleven global stock markets either in crashes or plunges at this time. Several have given up all gains achieved over several years in the past twelve weeks.
None of the above is good for the U.S. stock market.
In spite of the powerful multi-month stock market plunge in 2022, the stock market has not gotten "capitulation" oversold, not even close. There is plenty of selling to come before that happens. This has been an "orderly" slow motion crash. Orderly is not good because it means a bottom is not at hand. Selling exhaustion is nowhere near. This is why we are seeing continuous new Hindenburg Omens. They arrive when selling is not exhausted, when selling is coming, not ending.
We have updated short-term charts for the Industrials, S&P 500, and NASDAQ 100 in tonight's newsletter. Our top scenario is that corrective Micro degree wave 2-up for the Blue Chips, and wave ii-up for the NASDAQ 100, has topped, is complete. We do show an alternate that allows for one more pop higher to complete corrective rally legs. Wave threes down are either underway, or coming soon. That will be a powerful stock market decline.
The price pattern the past two weeks is clearly corrective, not the start of an impulsive new rising trend. The extensive overlapping of waves is evidence that the large degree declining trend from January 2022 and November 2021 is merely pausing. This is a continuation pause, and will be followed by a continuance of an impulsive decline.
The Industrials and Transportation average generated a Dow Theory Bear market signal a couple of weeks ago.
On March 8th, the stock market generated a third Hindenburg Omen observation for the third official H.O. that started March 1st. This means the odds of another stock market crash are higher than random, much higher, and this H.O. warning is on the clock through July 8th, 2022. There are again, now, three contemporaneous Official H.O's on the clock. The stock market crash warnings keep coming.
The recent stock market plunge came with several Hindenburg Omens on the clock simultaneously, warning of the serious fragility of stocks, and the likelihood of a crash. These proved prescient once again. There were H.O.'s on the clock for every single previous crash over the past 36 years. The new H.O. that just occurred warns that danger is not over, not even close.
The stock market currently sits on three simultaneous "official" Hindenburg Omen potential stock market crash signals. The H.O.'s are warning that the odds for a full-blown stock market crash are far higher than random at this time, one on the clock through July, one through May, the other through April. March into May is setting up to be particularly ugly.
We can expect a continuing wild ride for the Stock Market in 2022. There are going to be a total of 18 Phi Mate and significant Bradley Model turn dates throughout 2022. There will be 7 turns that both cycle methods identify together. Those will likely be major turns in the stock market. By comparison, there were only 8 total Phi Mate and Bradley Model turn dates during 2021, with only two turns identified by both at the same time. We will progressively feed these forward dates to you during 2022. Trend Turns typically occur +/- a few days from these dates.
Our intermediate term Secondary Trend Indicator generated a Sell signal November 26th. It fell 7 points Monday (out of a possible 9 points), to negative - 65.
The Blue Chip three component key indicator triggered a new Sell signal Monday, March 14th, as the Purchasing Power Indicator moved back to a Sell. The NASDAQ 100 three component key indicator generated a Sell signal Friday, March 11th. The small cap Russell 2000's Purchasing Power Indicator is on a Sell signal.
Our Blue Chip key trend-finder indicators generated a Sell signal March 14th, 2022 and remain there Monday, March 14th, 2022. The Purchasing Power Indicator component triggered a Sell signal Monday, March 14th. The 14-day Stochastic Indicator generated a Sell on March 8th, 2022, and the 30-Day Stochastic Indicator generated a Sell on March 8th, 2022. When these three indicators agree, it is a short-term (1 week to 3 months' time horizon) key trend-finder directional signal. When these three indicators are in conflict with one another, it is a Neutral (Sideways) key trend-finder indicator signal.
Demand Power fell 7 to 490 Monday, while Supply Pressure Rose 7 to 567, telling us Monday's Blue Chip decline was strong. This DP/SP Indicator generated a Sell Signal January 18th.
Today's Mining Stocks and Precious Metals Market Comments:
Gold broke decisively above the declining upper boundary of the "Handle" portion of a huge Bullish Cup and Handle pattern that started in 2011. This is a major development for Gold, which very likely will carry over into Silver and Mining stocks. The charts on pages 56 through 59 tell the story. Nothing moves straight up or down, there are corrections as prices progress, however the long-term picture for Gold is quite Bullish. Gold is headed for 3,000.
Gold may have completed small degree wave {iii} up, with subwave {iv} down underway now. If so, to follow will be a powerful wave {v} up. Gold fell 24.2 Monday. Silver fell 0.86, while Mining stocks fell 13.59. If the selling continues, it is likely that wave {3} up of larger degree may have completed and a larger degree wave {4} down is underway.
The HUI key trend-finder indicator moved to a Neutral signal March 14th, 2022, as the HUI 30 Day Stochastic triggered a Buy signal February 7th, and the HUI Purchasing Power Indicator triggered a Sell on March 14th. When these two indicators agree, it is a directional signal, and when at odds with one another, it is a combination neutral signal. The HUI Demand Power / Supply Pressure Indicator triggered a Buy signal February 14th. On Monday, March 14th, Demand Power fell 8 to 435 while Supply Pressure rose 12 to 403, telling us Monday's decline was strong.
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DJIA/SPY PPI fell 3 to negative - 41.66, on a Sell
DJIA 30 Day Stochastic Fast 33.33 Slow 28.67 On a Sell
DJIA 14 Day Stochastic Fast 33.33 Slow 36.67 On a Sell
DJIA % Above 30 Day Average 33.33
DJIA % Above 10 Day Average 36.67
DJIA % Above 5 Day Average 43.33
Secondary Trend Indicator Fell 7 to Negative - 65, On a Sell
Demand Power Fell 7 to 490, Supply Pressure Up 7 to 567 on a Sell
McClellan Oscillator fell to negative - 106.25
McClellan Osc Summation Index -1524.94
DJIA 10 Day Advance/Decline Indicator - 482.3 on a Sell
NYSE New Highs 32 New Lows 724
Today's Technology NDX Market Comments:
The NDX Short-term key Trend-finder Indicators moved to a Sell signal Friday, March 11th, 2022, and remain there March 14th, 2022. The NDX Purchasing Power Indicator generated a Sell on March 11th, 2022, the NDX 14 Day Stochastic triggered a Sell on March 7th, 2022, and the 30 Day Stochastic triggered a Sell signal on March 8th, 2022. When all three component indicators are in agreement on signals, it is a consensus directional signal. When they differ, it is a sideways signal.
The NDX Demand Power / Supply Pressure Indicator moved to a Sell Signal Thursday, March 3rd, and remains there March 14th. On Monday, March 14th, Demand Power Fell 11 to 472, while Supply Pressure was Up 1 to 540, telling us Monday's decline was strong with buyers not at all in the mood.
The NDX 10 Day Average Advance/Decline Line Indicator triggered a Sell signal February 14th, and needs to rise above positive + 5.0 for a new Buy. It fell to negative - 29.0 on Monday, March 14th.
NDX 100 Purchasing Power Indicator fell 8 to 203.62 On a Sell
NDX 30 Day Stochastic Fast 18.00 Slow 20.40 On a Sell
NDX 14 Day Stochastic Fast 22.00 Slow 27.60 On a Sell
NDX 10 Day Advance/Decline Line Indicator - 29.0 On a Sell
NDX Demand Power Fell 11 to 472, Supply Pressure Up 1 to 540 Sell
RUT PPI Fell 2 to + 174.26, on a Sell
RUT 10 Day Advance/Decline Line Indicator - 288.70, On a Sell
McHugh's Market Forecasting and Trading Report and this Executive Summary
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