Irrational: Not Logical or Reasonable

Posted on March 03, 2020

    Market State 6 (Transitional): It has been a wild week in the equity markets.   Just 6 trading days ago, the S&P 500 was sitting at a new high, with low volatility.  Last week, it felt like a trap door opened, and the market fell right through it.  The...

    Velocity of Volatility Spikes

    Posted on February 25, 2020

      Market State 6 (Transitional): The S&P 500 is now in a Transitional Market State 6, following Monday’s spike in volatility.  The Transitional Market State is a result of what is called a “velocity of volatility spike” (more on that below). ...

      Most S&P 500 Stocks are Bullish

      Posted on February 18, 2020

        Market State 1 (Bullish): The S&P 500 index is still in Market State 1, which is one of the five bullish Market State Environments.  As a reminder, there are 12 unique Market States, with 5 of them being bullish; 3 Transitional; and 4 bearish. Market...

        Large Caps, Technology Lead the Market

        Posted on February 11, 2020

          Market State 1 (Bullish): We mentioned in last week’s update that the stock market, as measured by the S&P 500 was in Market State 2 following the market’s slight pullback (only -3.1%).  We discussed that Market State 2 has a high probability of...

          News Doesn't Move Markets, It Creates Noise

          Posted on February 04, 2020

            Market State 2 (Bullish): Following the market’s (S&P 500) recent pullback, short-term supply and demand indicators turned negative, putting the market in a bullish Market State 2 (it previously was in Market State 1).  The characteristics of Market...