By: Jeff Cooper

Hit and Run Morning Stock Report: July 6, 2023


Market volume was slow Wednesday, matching the NYSE’s lowest full-day session of 2023.

The low volume mirrors the second consecutive N R 7 Day in the SPX.

Market breadth was far weaker than the major indices imply. This suggests an acceleration of selling should develop soon.

The SPX Daily Swing Chart turned down yesterday and is set to take out Wednesday’s low this morning thereby

Putting the index in my Plus One/Minus Two buy position.

To recap, this is NOT an automatic buy; it simply is “in the position”.

It is the price behavior from that position that telegraphs Mr. Market’s intentions.

The behavior should inform us as to whether the agenda is for that one more higher high potential toward 4480 region---or not.

If the 3 Day Chart should turn down on the Friday weekly closing basis and follow thru to the down side it is an indication our

Turning Point is exerting its downside influence for all the Time/Price synchronicities we’ve been highlighting.

As well a turndown in the 3 Day Chart warrants caution because we would have rapid flipping of the 3 Day Chart:

It turned down on 6/22 and turned back up on 6/29.

The trend of the market is a psychological manifestation of the crowd which we’ll go into more in Monday’s report.

However, suffice to say at this juncture, every sentiment index indicates the psychology of a market peak.

I’m watching GDXJ carefully to see if this pullback does what every other pullback since the April high does…implode.

Yesterday, GDXJ pulled back to our 35.50 pivot.

It may see a second consecutive lower daily low today.

But if it rallies from here or a lower low tomorrow, it will be a change in character worth noting.