Sentiment and Divergences are Pointing Up
October 19, 2022
Weekly Stock Market Levels - 10/18/22
Markets do not top together, nor do they bottom together. It’s critical to find the leading markets for clues on what’s about to unfold. We saw this in 2021 with global markets all topping throughout the year. Today, we are seeing them bottom one after the other.
We’re also seeing this pattern with various risk-on markets. Transports, high beta, biotech, and small caps, all made higher lows as the broad market made one more low. These assets tend to lead us down, which we were seeing in 2021, but they also will lead us up, which seems to be playing out now.
This week, we will look at these patterns, as well as define the current price range for the broad market. Divergences can provide an early warning signal, but unless the market breaks out of key resistance levels, we do not have confirmation of the trend change underway. I detail this for you more below and also feel free to check out my weekly webinars on YouTube where I discuss broad market levels.
10/18 Broad Market Levels Timestamps
00:00 - Stock Market Intro: The Gap Up from the August Downtrend
03:20 - The Price Range That Really Matters
06:00 - Divergences in the Dow Jones Transports, High Beta Stocks, and Financials
08:18 - Divergences and International Markets (German, Chinese, and Japanese Markets)
12:03 - Get more technical analysis. Sign Up for Free Stock Analysis
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