Bullish Bearish

There are arguments to be bullish and bearish as we start the week. Lets have a look at some of the main points of interest. There has been a Hindenburg omen on the NYSE which occurs when the amount of 52 week lows surpass 52 week highs. This can also be seen as a buying opportunity with dip buyers and has been in the past. At least it was when everyone knew the Fed was backstopping the market. Time will tell if the dip buyers are still there, now that the Fed it’s reducing the balance sheet. I prefer to wait for bullish confirmation.

JNK v SPX daily. We saw junk rally back up tot he 15 day MA resistance but it did not break above. There can be a rejection from here and we see further downside in stocks this week. You can often get caught in a bull trap in cases like this if you are too impatient.

SPX weekly. Breadth is still ok on the SPX so this is bullish.

IWM 4hr. Small caps below the 4hr kumo. Slightly bearish.

NDX daily. Consolidation with MACD crossed down. This is neutral.

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