By: Jeff Cooper
Hit and Run Morning Stock Report: June 9, 2023
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A Rally on Negative Breadth
Today’s report is short and to the point as there is no new information the market has provided.
Markets have been extraordinarily mixed daily this week as the various market sectors fell in and out of leadership.
Last Friday for example, SPX and QQ were very strong, then on Monday the SPX faltered while QQQ advanced.
Wednesday, QQQ fell back sharply while the Russell 2000 rose sharply.
Yesterday, the Russell fell while SPX spiked.
These sudden day-to-day shifts indicate indecision and confusion, typically a warning the Intermediate term trend is shifty.
Also typical of such a trend change are McClellan Oscillator reversals above and below zero in a short period,
As we’ve seen over the last six weeks when MYMO has crossed zero one way or the other ten times since mid-April.
Considering the negative breadth rallies, growing new yearly lows, faltering cyclical, and other factors, there is a strong likelihood that the next cross below zero for NYMO will be the last one for a while and will usher in a sustained decline.
As tweeted yesterday, a new high for the rally will create a possible Megaphone Top..hourly bassis.
As well another rally attempt that falters and ‘tails’ off will leave a third such topping tail in a short period or what I call a Charlie’s Angels sell signal---3 Tails in close proximity.For the moment, 428/329 SPY square and 358 QQQ square are exerting their influence.
But as we saw after hours with TSLA, which spiked through its 234 square---when a square is captured with authority, it opens the door for higher prices, often dramatically.