DAY HAGAN TECH TALK: NOVEMBER 28, 2017

The stock market deals in probabilities, not 100% certainty. Within that context, the non-trading equity market backdrop remains supportive. This is my observation, because the Advance-Decline Lines I follow (Common Stock Only and Traditional for NYSE, S&P 500, S&P MidCap, S&P SmallCap and Pring Global) overcame recent divergences and are moving in sync with their respective equity market indices. 

One of the biggest challenges I have encountered as an analyst on Wall Street is that most investors want a simple answer to a multidimensional matter: the direction of the stock market. In my experience, the question usually goes something like this: “Art, what’s the market going to do?” After jokingly mentioning that the stock market opens at 9:30 and closes at 4:00, I humbly explain that if investors can remain unemotional, identify and manage their risk tolerance levels, and identify the long-term trend, they are then better able to handle the equity market’s short-term gyrations. This is especially true if the long-term trend and near-term gyrations appear to counter the prevailing headline news of the day.

S&P 500 Large Cap Index. while a lower Bollinger Band depicts a near-term oversold condition at 2566 (not shown), initial supports exists between 2555 and 2540. 

Have a wonderful week, and please know that Day Hagan Asset Management appreciates your support!

Art Huprich, CMT
Chief Market Technician
Day Hagan Asset Management

—Written 11.27.2017. Chart sources: Stockcharts.com.

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