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Friday January 26th, 2018

Summary

SPX ATH.

SPX A-D ATH.

Lot of Neg Div still to pay attention to.

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My proprietary Technicals Model has been up for the 48th day in a row, the longest streak since I started calculations in 2006. Major market momentum at play here!

As of Friday Jan 5th both of my swing trade signals are BULLISH, yes much much too late this time.

HYG:IEF has broken last major peak, on March 1st 2017. But it doing so has made significant negative divergences. If it can gain momentum, then it can break these divergences, but its a red flag as of right now. This is a very significant chart to follow!

SPX daily hit All Time Highs today. Negative divergences are in place for 2 of 5 indicators since the middle of the month, with 2 others breaking recently. Countless Hindenburg Omens have occurred since this past summer. Still feel its likely that the next top will be a SIGNIFICANT TOP. At the All Time Highs, SPX Hourly shows negative divergences back to late November for many indicators, therefore I am expecting SPX to turn lower soon.

My proprietary Technicals Model was higher for the 48th day in a row, with a positive divergence at 9/1's peak vs. SPX, foretelling of this bullish run. On 11/30 it fell just short of making a Technicals Thrust. The Cumulative version of the Technicals Model made a new All Time High 1/24. My statistically driven Volatility Model is steady to lower.

VIX finished lower, on a hourly MACD SELL signal. but there were no negative divergences at this time-frame to give indication that the reversal lower will last long. Zooming in to the 15-min chart, there was only 1 negative divergence, so its more likely than not that VIX will find a footing and venture higher in due time.

Market Internals, participation and breadth indicators, were mixed today. Many of these are in positive territory, yet are well off peaks from last year. SPX A-D line made a new All Time High on 1/24, obviously above its 20 dma which is rising. SPX McClellan has been positive for the 16th day in a row.

Economically, while most talking heads are yammering about the downward trend in 10Y-2Y (The Yield Curve is flattening to 2007 levels), my work dating back to 1990 using the slope of linear regression at all maturity levels shows since 2010 the yield curve has been rising (Bullish Economy) and is well off the levels that foretold a recession in 2000 and 2007. In fact, rising to these levels, matches up well with 2005, 1997 and 1995. Not bad years for stocks, eh?