Here are the member-only market studies for stocks, commodities, and currencies.
Let’s analyze the stock market’s price action by objectively quantifying technical analysis. For reference, here’s the random probability of the U.S. stock market going up on any given day, week, or month.
*Probability ≠ certainty.
Russell ended its loss streak
In today’s free market studies we looked at what happens to the Russell 2000 when it breaks a 6 week loss streak.
Here’s what happens next to the S&P 500 (historically) when the Russell breaks a 6 week loss streak.
As you can see, the S&P’s forward returns are more consistently bullish.
NASDAQ’s need for a retest
The NASDAQ broke a 4 week loss streak.
Here’s what happens next to the NASDAQ when it breaks a 4 week loss streak while above its 100 weekly moving average
As you can see, the NASDAQ tends to experience some losses over the next 2 weeks.
In today’s free market studies we looked at what why XLY:XLP is sending a long term bearish sign for the U.S. stock market right now, and why we think this is inaccurate.
Here’s another way to look at XLY:XLP
The XLY:XLP ratio’s 14 day RSI fell below 26 in mid-October.
When this happens (historically), the the S&P tends to bounce in the next 1 month.
*Keep in mind that the S&P is now lower than where it was in mid-October.