ChartTrader – 240307: MRNA, ILMN – 4wk High-Low% is Bullish – Using ATR Stop to Define the Trend (Premium)

We are in a bull market, but the stock market is not firing on all cylinders in 2024. Overall, the weight of the evidence remains bullish because most cylinders are firing and supporting the uptrends. Note that the S&P MidCap 400 SPDR (MDY) and S&P 500 EW ETF (RSP) closed at new highs on Monday.

The short-term uptrend remains intact for SPY. The first chart updates SPX %Above 50-day SMA and SPX 4-week High-Low Percent. Over 90% of S&P 500 stocks were above their 50-day SMAs in early January and only 64% are above here in late February (mustard arrow). Fewer stocks are participating

Long-term, the weight of the evidence remains bullish. The chart below shows the bullish sequence starting with the Zweig Breadth Thrust on November 3rd. See the ZBT1500 Thrust in the middle window and the green arrows on the price

Stocks fell back this week with declines over the last two days, but the futures are pointing to a sharply higher open after Nvidia exceeded expectations. Once again, pullbacks are very short-lived as the market quickly rebounds

We are in a bull market, but some indicators are still pointing to a corrective period and a correction may have started last week. First, fewer stocks made it back above their 50-day SMAs as SPY moved higher in the first half of February. Second, seasonal patterns turned negative last week (mid February). Thinking in tornado terms, a tornado

Fewer stocks are partaking in the current advance, but SPY remains in a short-term uptrend and 4wk High-Low Percent is bullish. The chart below shows SPY moving higher

We are in a bull market, but evidence is pointing to a corrective period and a correction could begin this week. Warning signs appeared over the last few weeks as fewer stocks made it back above their 20-day SMAs this month. Seasonal patterns are also

There is no change in the overall market environment. The weight of the evidence remains bullish, but the stars are aligning for a correction. SPY and QQQ are overbought. Breadth is deteriorating within the S&P 500. Small-caps and mid-caps are weak with

The weight of the evidence remains bullish, but the stars are aligning for a correction. SPY and QQQ are overbought. Breadth is deteriorating within the S&P 500. Small-caps and mid-caps are weak with MDY and IWM forging lower highs from December to February. Seasonally, February is one of the weakest months of the year.

Stocks were hit with strong selling pressure on Wednesday with dozens of ETFs gapping down and falling more than 2%. Small-caps led the way lower with the biggest declines and all sectors lost ground. The Healthcare SPDR (XLV) had the smallest loss. Tech-related ETFs

The broad market environment remains bullish with SPY and QQQ leading the way. This bull market started with the Zweig Breadth Thrust (ZBT1500) on November 3rd (green bar) and channel breakout in SPY a few days later. SPY also moved above the upper

The Technology sector, the Communication Services sector and Nasdaq 100 stocks are powering the S&P 500 SPDR higher. I am also seeing strength in the Healthcare sector. Outside

This content is for subscribers. (Login or Subscribe)

This week’s analysis will stick with the multiple timeframe approach. Today we are featuring a biotech stock with a channel breakout on the weekly chart and a classic retracement on the daily chart. Moreover, a larger bullish reversal pattern could be forming on the daily chart.