Narrow leadership, comparable to what we have seen since the beginning of 2023, is worrisome. Bob Farrell once said, "Markets are strongest when they are broad, and weakest when they narrow to a handful of blue-chip names." Also, the small positive divergence in “Small-Cap land” must be built on!

The Day Hagan Technical Analysis was recorded on March 21, 2023. Art Huprich, CMT, shares his monthly chart jamboree. He discusses the banking sector and recent bank closures, the Bond markets, Equity Markets, the overall U.S. economy, Growth, Gold, Crude Oil, and other financial market topics.

During our recent technical analysis Chart Jamboree, we spent a lot of time addressing whether Wall Street is putting its head in the sand about the effects of quickly rising bond yields. Last week’s tape action and this weekend’s banking system news answered our question with a resounding “yes, it is.”

Wall Street is focused on Fed Chair Powell’s semiannual monetary policy testimony today and tomorrow and the employment report Friday. With that backdrop, the short-term chart configuration of domestic equity market proxies remains neutral. From an intermediate-term perspective, with excessive optimism (sentiment) relieved, the weight of the evidence supports the prospect of the uptrend eventually continuing, as shown in last week’s Chart Jamboree.

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.