Market Crosscurrents

Market Crosscurrents

November 10, 2023

Key Takeaway

There have been some very positive technical advances as of late; however, until there is a solid breakout of price above the downtrend line (orange), the S&P 500 is still considered to be in a short-term down-trend - defined as lower-highs and lower-lows. If the market cannot break back up and into the mid-term up-channel trend (blue up channel), yet stays above the short-term orange down-trend line, then the market will be caught in a crosscurrent, which could be filled with indecision and market choppiness.

There is good hope that the market will not get stranded in a crosscurrent, as the RSI seems to be solidly advancing and and MACD has experienced a positive crossover and is turning positive. Another constructive sign is that the market is above the highs set in August 2022 (green circles).

Should we avoid this potential crosscurrent by breaking back into the blue up-channel, then investors should consider putting some of their cash to work - if not for a little while.

 

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