Daily market review Nov 22 2023 ( Happy Thanksgiving holiday to everyone )
Happy Thanks giving holiday to all the USA Subscribers. And Hooray, Chair Powell ( and Janet Yellen behind the scene ) is presenting bear platter feast for all the bulls out there.
Broad market overview
market still drifting upwards and consolidating at the upper range, buying demand is still strong and look ready to press upward again after Thanksgiving holiday. If price climbs again, there is likely some consolidation/stalling in 1st half of December.
Update will short as I have been quite busy with work and chart historical studies
MOVE index
MOVE index closed at around 111.5 , would like to see it moving closer to 100 in the coming days. ( Lower MOVE index decrease bond haircut, causing an increase in collateral value of bond, leading to more fund available for big institutions, thereby increasing market liquidity. )
10Year Yield (TNX)
10Y yield still is below 50day-MA and below2nd Uptrend line, pressing downwards, and seem to be ready to accelerate to the downside.
DXY
Waiting for decisive breakdown of 200Day MA in Dollar index
NYSE market internals
Tuesday Nov 21, 1.99 to 1 NYSE Decliner to Advancer ratio ( 1884/943 )
Wednesday Nov 22, 1.79 to 1 NYSE Advancer to Decliner ratio ( 1813/1012 )
% of SPX stock above 50days and 200 days MA
Market breadth is very solid,
percentage of SPX-Stock above 200days-MA, currently at 56.4% .
percentage of SPX-Stock above 50days-MA, currently at 74% . market likely will run up to high 80% or 90% before consolidation/stalling sets in.
Market Rally sustainability assessment
Recalled about 2 weeks ago, I developed a set of new criteria to assess the sustainability of the rally. The conditions are slowly turning more positive ( Equal weighted discretionary outperforming consumer staples will be slowest to turn )
Charts are attached below for your reference
MOVE ( refer to charts above )
Equal-weighted SPX vs Cap-weighted SPX
Consumer discretionary vs consumer staples on equal-weighted basis
Transportation
As always, we will continue to monitor the charts, assess the bullish/bearish evidence day-by-day to make appropriate capital allocation and investment decisions.
The bold readers among you who took action and got involved in this market rally can pat yourself in the back and have some great profit to look forward to in the coming weeks and months.
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