top of page

#49 - Negative Equity Momentum Reaches Extremes

Thursday's price action in equities showed signs of capitulation. Is it time to buy to position for a possible year-end rally? If you are waiting for the right moment, momentum and technical indicators flash a green light.

1. SPX (ES1) reached the bottom of our correction zone 4146-4212. This area receives support from a trendline channel, wave 1&5 equality target and 50% Fibo retracement from the Oct/Jul move.

2. Our developed market equity momentum indicator signals very oversold conditions across a basket of DM equity indices. The last time we were as oversold was in October 2022.

3. Our moving average deviation indicator flashes oversold momentum, with the SPX distance to the 50dma the widest since Sep 2022.

4. 2 of our 4 oscillators have turned contrarian positive for most of DM equity indices with the RSI about to follow suit (when below 30).

Bottom Line:

If you are waiting for the right moment to position for a year-end rally in equities, thursday's price action provides you with a good entry and a favorable risk/reward profile.

Good Luck

Team MacrometR Disclaimer: No investment advice. For informational purposes only.


bottom of page