This presentation discusses the current financial market trends, stock market corrections, Small Caps, sentiment, The Great Unwind, International and Emerging markets, seasonality, and more. Financial advisors are encouraged to watch this presentation replay for a comprehensive understanding of the market trends and indicators.

The Catastrophic Stop model increased to 82.9% from 77.9% last week. The Internal and External composites are bullish.

The Catastrophic Stop model declined to 77.9% from 82.9% last week. The Internal and External composites are bullish.

Wall Street veteran Ralph Acampora has said, “Rotation is the lifeblood of any bull market,” an apt description of the domestic equity market last week.

The Catastrophic Stop model increased to 82.9% from 77.9% last week. The Internal and External composites are bullish.

The “Index Movers” continue to play a major role in driving the Large Cap Growth/Technology-oriented domestic equity market indices higher, pretty much at the expense of everything else. Consequently, what price levels can help us discern when a turn lower by the Index Movers leads to a reversal by Large Cap Growth indices and another time or price correction—relative or absolute basis?

The Catastrophic Stop model increased to 77.9% from 70.7% last week. The Internal and External Composites are positive.

As we recognize and celebrate the birth of our wonderful nation later this week, I think back to one of the things I have learned over four-plus decades on Wall Street.

This presentation discusses the current financial market trends, the Catastrophic Stop Model, global markets, sentiment, sector allocations, the U.S. dollar, index movers, seasonality, and more. Financial advisors are encouraged to watch this presentation replay for a comprehensive understanding of the market trends and indicators.

The price trend of the “Technology-weighted” S&P 500 continues higher (Figure 3). Simultaneously, several breadth measures within the Technology sector have deteriorated, and I have already noted and likely over-discussed the internal deterioration beneath the broader domestic equity market.

“Yet” can be defined as “something has not happened up to the present time, although it may.”

The domestic equity market has experienced a fair amount of volatility over past few months, including 2 large, short-term intraday reversals. Considering uptrend by equity indices affected by the “Growth Index Movers” & the favorable position of the CSLM, many domestic equity market indices remain confined to large trading range patterns, staying a bit longer than desired & frustrating many.

While volume expanded last Thursday, it didn’t come close to exceeding its 50-day average as it did when the key reversal occurred in April. Therefore, before labeling last Thursday’s intraday high of 5341.88 as a short-term top (it is now a resistance point), more evidence is needed.

This presentation discusses the current financial market trends, the Catastrophic Stop Model, new highs, broader indices, Global Equity Supply, Sector Allocations, Global Markets, Seasonality and Sentiment, U.S. Dollar, and more. Financial advisors are encouraged to watch this presentation replay for a comprehensive understanding of the market trends and indicators.

The domestic equity market has sloshed back and forth over the past few months, confined to a multi-month trading range. Nonetheless, some Advance-Decline lines have reached new highs and new 52-Week Highs are slowly expanding, supporting equities from a primary-trend perspective.

Equity markets can trend higher (higher price troughs and higher price peaks), lower (lower price peaks and lower price troughs), or sideways (rangebound). With the NYSE Advance-Decline Line (all issues) having just closed at a new high and the NDR Catastrophic Stop Loss model still positive, in mid-March we discussed a “Big Cap hesitation.”

Following an oversold condition and some “stealth price stability” in areas other than Technology/Growth (discussed last week), the “Index Movers” bounced higher last week. Consequently, the S&P 500 has retraced approximately 50% of the March-April decline and is now amid various pockets of overhanging selling pressure—resistance.

Day Hagan Market Update, hosted by Donald Hagan, CFA, was recorded on April 24, 2024. Don discusses a variety of financial market-related topics, including the driving forces influencing the global financial markets, the U.S. economy, economic growth vs inflation, Equity Sectors, tax policy, Fed rate cuts, Smart Sector with Catastrophic Stop Update, International markets, Fixed Income, and more.

Late last week, the “Index Movers” were sold and consequently the big cap equity indices recorded a significant decline. Meanwhile, other equity market areas attempted to outperform, showing that there was some price stability under the surface. Proxies for utilities, staples, financials, health care, and DJIA were up for the week. Was that it? Is the selling done/close to being done?

Prior to last week’s decline and as volatility picked up in both directions, domestic equity market indices had generally traded sideways for the better part of the past four to six weeks (hesitation). With last week’s sell-off, however, either uptrend lines were violated and not decisively recaptured and/or previous reaction low support levels were broken.