The Day Hagan Technical Analysis was recorded on February 28, 2023. Art Huprich, CMT, shares his monthly chart jamboree where he discusses regime change, equity markets, inflation, interest rates, quantitative tightening, light crude oil, growth vs value, and other market topics.

Everyone is blaming the Fed, two nonvoting FOMC participants, and related economic reports for yesterday’s sell off and last week’s price swings, including a lot of stock-specific weakness. For me, it was the continuation of prevailing conditions: overhanging selling pressure (resistance) making itself felt (Figure 1) and upward trending interest rates. As Wall Street debates the issues, I expect further volatility and for equity market proxies continue to consolidate/pullback—SPX 4000+/- to 3950+/-.

Within the context of a supportive price pattern of a higher trough & higher peak (Figure 2), Wall Street appears frustrated as domestic equity market indices struggle with overhanging selling pressure (resistance). It’s not clear yet whether a consolidation pattern develops or if further downside probing occurs.

Day Hagan Market Update, hosted by Donald Hagan, CFA, was recorded on February 9, 2023. Don discusses a variety of financial market-related topics, including the driving forces influencing the global financial markets, the U.S. economy, NDR Economic Models, Inflation, Earnings Growth, the Information Technology Sector, Valuations, the U.S. dollar, Manufacturing, the NDR Catastrophic Stop model, and more.

Within the context of a supportive, internal, price-related backdrop, last week I twice suggested tightening up short-term (trading) stops or taking short-term (trading) profits in whole or in part. In today’s report, I expand on one reason why—beyond the SPX trading over 2.5 standard deviations above its 50-day MA, an overbought condition—I still suggest this near-term tactical move.