Abstract
As we come to the tip of one other sturdy yr for the inventory market, plenty of technical circumstances usually are not practically as sturdy as once we entered 2024. On the identical time, different sentiment indicators are reflecting excessive optimism — simply as they have been a yr in the past. The market bottomed in October 2023 and had an incredible run in 2024 till July, when it was smacked for a number of months. After bottoming in August, shares noticed extra clear crusing — albeit with some agita of late. In the beginning of 2024, 79% of shares on the S&P 500 (SPX) have been above their 200-day common; right now, that studying is 58% and has been falling because the starting of December (when it was 77%). For the S&P 100, a particularly excessive 84% of the index was over its 200-day firstly of the yr; now, that has dropped to a mildly bullish 63% (from 79% on the finish of November). For probably the most half, these breadth deteriorations have taken place since mid-October. For the Nasdaq 100 (NDX), a really sturdy 87% of the index holdings have been over their 200-day firstly of the yr; now, the studying is 58%. There have been two durations of degradation, and each coincided with rallies within the index. The Bullish Pe
