Stocks fell sharply on Tuesday as the market reacted to testimony from Fed Chairman Powell. The Dollar surged and gold fell, but the 20+ Yr Treasury Bond ETF actually advanced on the day. Based on

Stocks corrected throughout February and many ETFs are setting up with pullback patterns taking shape. The S&P 500 SPDR (SPY) is testing its 200-day SMA after a pullback the last four weeks. QQQ broke

The weight of the evidence is technically bullish for the stock market, but the bears fired a shot across the bow as SPY and other key ETFs broke short-term support levels. Many ETFs were consolidating with falling flags, falling wedges or

The weight of the evidence is bullish for stocks. The CBM is positive, SPY broke out of a big falling wedge and QQQ broke double bottom resistance. Short-term, stocks surged in 2023 with the

The Composite Breadth Model turned positive on January 31st, the percentage of stocks above the 200-day SMA is strong across the board and yields spreads are trending lower (narrowing). This makes the Market Regime bullish for stocks. The only caveat

The Composite Breadth Model turned positive and hit its highest level since January 2022. This means the weight of the evidence turned bullish for stocks. Narrowing yield spreads show increasing confidence

The Composite Breadth Model improved, but remains negative and the market is at a critical level. A critical level means we are at a moment of truth or a make or break point. One more push higher would turn the CBM positive and trigger a big wedge

The Composite Breadth Model remains negative, but the market is quite split overall. The 5-day SMA for the S&P 500 is very close to crossing above the 200-day SMA, the percentage of stocks above the 200-day SMA is strong and yield spreads are narrowing. There was also a move

The Composite Breadth Model remains negative, but the breadth indicators show a split among stocks with roughly half above their 200-day SMAs and half below. The Fed balance

The Composite Breadth Model turned negative on December 19th and remains negative as we start the new year. There are some pockets of strength within the S&P 500, but these are overshadowed by relative weakness in large-caps.

The Composite Breadth Model turned negative on Monday and the Market Regime is back to bearish. 2022 was year of the whipsaw for the CBM, but whipsaw periods are normal for trend following models and part of the overall process. AAA spreads