📈Times are Changing*New Trend*

This week we saw a several changes in trend. Banks stocks that were once holding are starting to roll over. Semiconductors are resilient but having difficulty pushing through. Mega cap technology leaders continue to lead but we did see a pause. Several new leaders are emerging but without index leadership for how long? Currently we have one of the lowest NYSE new highs readings this year. This usually is a sign of less breadth and a weaker market. The amount of SP500 stocks above the 200 SMA has broken 50% and we are currently at 6 month lows on the reading. Over 50% is a sign of a healthy bull market. For example the reading was over 50% during July 2020 to January 2022. For most of 2022 we were below the 50% line. Technically a lot is changing.

The SP500 is unable to get above the anchored VWAP of January 2022. We are consistently seeing the ability to not be able to hold over it.

SP500 remains in a trading range since last June and is currently above the 200 SMA. Most recessions start with the index basing for 6-9 months.

Nasdaq continues to stay in a base started in May 2022 with $313 being resistance.

Nasdaq does have a negative divergence on the RSI which can be bearish and worth noting

Russell 2000 continues to break $170 support and then bounce but zooming out shows that major support has already been broken and we are below the major lower trend line. Note the double top pattern accented in red arrows. When it doubt zoom out.

Financials have led any bull market rally in the SP500. XLF continues to test major support established during the Great financial crisis of 2008. We would like this massive h pattern to hold.

Semiconductors are leading but may have come to a crossroads. Several charts look great but we need to push through and while the RSI negative divergence can right itself we need to remain aware.

NVDA has been a monster winner for us but has failed to clear our $273 target level the last three attempts.

Tesla continues to hold but is below the 200 SMA and the RSI is pointing down. The 55 SMA is in purple.

Netflix is seeing renewed interest and was a big winner this week with huge volume clearly the 55 SMA and soaring RSI

IOT newer issue and smaller capitalization name but respecting the wicks and perfectly tested the breakout bar low and held forming a huge pendant

For a detailed look at what is happening in the banking sector, how the banking sector is affecting the market and wreaking havoc on bond traders watch the video below. I go over several other stock ideas and why commercial real estate portfolios are the real issue in banking. I did a longer version of the newsletter today due to the current market conditions if you like the longer format please comment. It helps me create content.

Wishing Everyone Massive Success in 2023 🍾