.SPX: When Will the Market Top?

$S&P 500(.SPX)$ thoughts: When will the market top?

There are three correction criteria I monitor every week.

1. Price trading below the short term trend, I use the 20-day moving average

2. Breadth turns negative, more stocks make new lows vs new highs

3. Momentum is disrupted

Presently, price is above the short term trend and breadth has been overwhelmingly positive. Consequently, criteria 1 and 2 remain inactive.

Criteria 3 is momentum. I use the Price Percentage Oscillator (mid panel) to gauge momentum. In my work a momentum disruption is either immediately followed by a decline, or occurs at the end of a series of interruptions where the correction erases the advance during the cycle. These momentum interruptions are marked with red dots in the mid panel. It is clear today the market is progressing through a series of interruptions.

So when does the market top? The chart below marks with vertical dotted lines instances where price lost the short term trend, breadth turned negative, and momentum faltered, triggering all three correction criteria.

When all three criteria are active I maintain the thought that the index will progress through a decline towards 4500 - 4600.

Image

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Momentum is disrupted </p><p>Presently, price is above the short term trend and breadth has been overwhelmingly positive. Consequently, criteria 1 and 2 remain inactive. </p><p>Criteria 3 is momentum. I use the Price Percentage Oscillator (mid panel) to gauge momentum. In my work a momentum disruption is either immediately followed by a decline, or occurs at the end of a series of interruptions where the correction erases the advance during the cycle. These momentum interruptions are marked with red dots in the mid panel. It is clear today the market is progressing through a series of interruptions. </p><p>So when does the market top? The chart below marks with vertical dotted lines instances where price lost the short term trend, breadth turned negative, and momentum faltered, triggering all three correction criteria. </p><p><strong>When all three criteria are active I maintain the thought that the index will progress through a decline towards 4500 - 4600.</strong></p><p class=\"t-img-caption\"><img alt=\"Image\" title=\"Image\" src=\"https://community-static.tradeup.com/news/9e185d6108a3de0cb220e89a5b5ce108\" tg-width=\"900\" tg-height=\"561\"><span>Image</span></p><p></p><p><em>Follow me to learn more about analysis!!</em></p><p>https://twitter.com/tomthetrader1/status/1764307019711062144</p></body></html>","htmlText":"<html><head></head><body><p> <a data-mention-id=\".SPX\" class=\"teditor-mention\" data-mention-name=\"S&amp;P 500\" href=\"https://ttm.financial/S/.SPX\">$S&amp;P 500(.SPX)$</a>  thoughts: <strong>When will the market top? </strong></p><p>There are three correction criteria I monitor every week. </p><p>1. Price trading below the short term trend, I use the 20-day moving average </p><p>2. Breadth turns negative, more stocks make new lows vs new highs </p><p>3. Momentum is disrupted </p><p>Presently, price is above the short term trend and breadth has been overwhelmingly positive. Consequently, criteria 1 and 2 remain inactive. </p><p>Criteria 3 is momentum. I use the Price Percentage Oscillator (mid panel) to gauge momentum. In my work a momentum disruption is either immediately followed by a decline, or occurs at the end of a series of interruptions where the correction erases the advance during the cycle. These momentum interruptions are marked with red dots in the mid panel. It is clear today the market is progressing through a series of interruptions. </p><p>So when does the market top? The chart below marks with vertical dotted lines instances where price lost the short term trend, breadth turned negative, and momentum faltered, triggering all three correction criteria. </p><p><strong>When all three criteria are active I maintain the thought that the index will progress through a decline towards 4500 - 4600.</strong></p><p class=\"t-img-caption\"><img alt=\"Image\" title=\"Image\" src=\"https://community-static.tradeup.com/news/9e185d6108a3de0cb220e89a5b5ce108\" tg-width=\"900\" tg-height=\"561\"><span>Image</span></p><p></p><p><em>Follow me to learn more about analysis!!</em></p><p>https://twitter.com/tomthetrader1/status/1764307019711062144</p></body></html>","text":"$S&P 500(.SPX)$ thoughts: When will the market top? There are three correction criteria I monitor every week. 1. Price trading below the short term trend, I use the 20-day moving average 2. Breadth turns negative, more stocks make new lows vs new highs 3. Momentum is disrupted Presently, price is above the short term trend and breadth has been overwhelmingly positive. Consequently, criteria 1 and 2 remain inactive. Criteria 3 is momentum. I use the Price Percentage Oscillator (mid panel) to gauge momentum. In my work a momentum disruption is either immediately followed by a decline, or occurs at the end of a series of interruptions where the correction erases the advance during the cycle. These momentum interruptions are marked with red dots in the mid panel. It is clear today the market is progressing through a series of interruptions. So when does the market top? The chart below marks with vertical dotted lines instances where price lost the short term trend, breadth turned negative, and momentum faltered, triggering all three correction criteria. When all three criteria are active I maintain the thought that the index will progress through a decline towards 4500 - 4600. 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