Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : News Links and Chart Links -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (28425)	2/1/2024 10:27:50 AM
From: Les H	Respond to of 29597

Equity market performance in the month of February is typically nothing notable with the S&P 500 Index averaging a loss of 0.1%, based on data from the past two decades. tocks dropped on Wednesday as investors sold off big-tech stocks following earnings and reacted to statements from Fed Chair Jerome Powell, who poured cold water on the prospect of seeing a rate cut as early as March. The S&P 500 Index ended down by 1.61%, realizing the worst single session decline since September amidst the third quarter pullback. The loss on the day certainly imposes a threatening look to the short-term trend, something that was at risk anyways given how overbought the market had become, but there is certainly no damage being inflicted on the intermediate-term path, yet. The benchmark remains above previous resistance at 4800 that capped upside momentum for the past couple of years and major moving averages remain firmly below present levels. While the Relative Strength Index (RSI) has pulled back out of overbought territory, characteristics of a bullish trend remain with both MACD and RSI above their middle lines. What does raise a point of concern pertaining to the intermediate-term path is the possible lower-high of both RSI and MACD below their December highs, threatening to reveal a divergence versus price. If confirmed, this would be indicative of waning upside momentum, a potential precursor to a more substantial pullback ahead. December’s RSI and MACD readings set a high bar, therefore it seemed likely that the benchmark would not be able to overcome that previous threshold. The last negative momentum divergence that was observed with respect to these indicators was recorded in July, ahead of the correction that played out in stocks through the remainder of the third quarter. The difference between now and then is that back in July investor sentiment was overly bullish and highlighted complacency, while current sentiment readings are pointing to a more neutral bias. This is not the setup, yet, to be bearish of stocks over a sustained timeframe, although we could be setting up for such a shift of trend ahead. equityclock.com The federal government borrowed almost $ 900 billion from the stock market peak in July 2023 to the market low at the end of October. That was a major cause of the simultaneous sell off in bonds and equities.