Technical Strategy Video:

The video in this report is only accessible to members
The video in this report is only accessible to members

Key Takeaways

  • SPX break to multi-day lows was accentuated by Technology’s decline
  • Value continuing to make inroads vs Growth- While Large-Cap Growth was far better than Value into End of year 2021, Mid and Small-cap Growth had never really strengthened as much.  Recent days shows Value across all styles breaking out vs Growth
  • Oil stocks up to near resistance after a strong start to 2022;  Meanwhile, Materials sector breaking back out to new all-time highs, largely ignoring Tech weakness thus far in 2022

Tuesday’s decline started off fairly innocuous, with positive breadth and seven sectors higher on the day, despite a -1% decline in Nasdaq.   However, this turned a bit more severe in the final hour of the day, and SPX broke former highs at 4713 on a close which turns near-term trends bearish.  Overall, technically speaking, a retest of December lows looks likely in January 2022.  This likely plays out as a three-wave move, with Wednesday/Thursday providing a short-term, low, then bounce, then further selling. 

The video in this report is only accessible to members

The Technical reasons for a further decline in the weeks ahead are as follows:

Wave structure has turned more negative, both for SP...

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