$SPX 5000! ... wait ... almost ... there it is!
Market Update February 8, 2024
Today’s article will be short and go straight to the charts.
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Large caps, market leaders, and those with upside earnings surprises continue to move higher.
The SP 500 was all set to hit 5000. The hats and t-shirts were ready to be passed out. So, to prove they still have a sense of humor, the market gods turned the index back yesterday at $4,999.89.
[insert laugh emoji here]
They didn’t relish the humor long, though, as SPX ticked a high water mark of $5000.40 today. Do we let the celebrations begin? Or do we wait for it to close above?
Beneath the surface, breadth continues to weaken, as indicated by the number of stocks making new highs, the percentage above their 50 and 200-day MAs, etc.
Pair this with weak seasonal tendencies for February, and you get a mixed bag of caution and opportunity.
SPY keeps a tight range and moves slightly higher as the SPX briefly hits $5000. The grind higher continues.
QQQ followed the same playbook and moved slightly higher on the day. RSI is still not overbought, and there is room above the upper Bollinger Band.
IWM was a leader on the day and claimed a victory of getting back over the moving averages. That’s a good sign, however, $200+ is still the meaningful test.
DIA continues to ride the rising 8-day MA higher.
TLT continues to be a bit discouraging to see the move above the 200-day MA fail. But so far, it is staying in the previous zone. That needs to hold first. Below, the 91.85 pivot and 100-day MA are the potential support levels.
DXY has not been able to get past pivot resistance so far. Does it keep consolidating? Or can it break lower again?
BTCUSD finally broke free of the box and moved beyond $45,000. This let many related names rally (MARA +23%, RIOT +15%), and now we can watch for a possible run into new highs.
The Closing Bell
That’s it for today.
Weekly Charts are coming over the weekend. See you there.
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***This is NOT financial advice. This is NOT a recommendation to buy, sell, or trade any security. The content presented here is intended for educational purposes only.
Andrew Moss is an associated member of T3 Trading Group, LLC (“T3TG”), an SEC-registered broker/dealer and member of FINRA/SIPC. All trades placed by Mr. Moss are done through T3TG.
Statements in this article represent that person’s opinions only and do not necessarily reflect those of T3TG or any other person associated with T3TG.
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February 8, 2024, 4:00 PM
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