Markets managed to carry on to early lows with out the promoting stress from earlier final week.

Whereas the shopping for was comparatively modest, it nonetheless wasn’t sufficient to see a return above 20-day MAs for indexes, though there’s a good likelihood for a second chew of the cherry this week.

For the () there was an “inverse hammer” at oversold near-term stochastics, however not at mid-level intermediate stochastics – a stage typically related to assist throughout bull markets.

There are ‘promote’ indicators within the MACD and On-Steadiness-Quantity to beat however different technical helps are wholesome.

The is caught midway between its 20-day MA and assist outlined by the slim November consolidation.

Whereas this can be a little bit of a ‘no-mans’ land, I nonetheless like the present stage for a rally, however do not be shocked if there may be an intraday spike right down to the November congestion stage.

There’s solely (a well-established) MACD ‘promote’ set off to beat, whereas the relative underperformance to the is much less of a priority.

The S&P 500 has been the dominant index for the latter a part of 2023 and is gaining relative efficiency to look indexes in 2024.

The index is effectively above November congestion and solely has the 20-day MA to contemplate.

And of the core indexes, it is the very best positioned to recuperate the shifting common. As with the Nasdaq and Russell 2000, it has a MACD set off ‘promote’ to beat, however different technicals are all in good condition.

One metric I will be watching is the Nasdaq Summation Index ($NASI). It is a dependable sign set off and after a interval of constant power since November, it has switched to a ‘promote’ set off at a stage usually related to Nasdaq tops.

It could not result in any important decline within the Nasdaq, however a interval of sideways motion wouldn’t be stunning.

The opposite index to observe is the . It has come again to July breakout assist and bounced off it, however not very strongly.

If it falls beneath 3,875, then look ahead to a transfer again to the prior swing low at 3,150, which might tie in with the above ‘promote’ sign within the Nasdaq Summation Index.

For this week, look ahead to weak spot in Tech indexes that would profit the S&P 500 with rotation out of speculative Tech shares, though a falling tide sinks all ships.

If indexes can get above their 20-day MAs, then we’re wanting on the challenges of current swing highs.