highlighted a few risky signals investors should monitor to get a clue about a potential stock market sell-off, according to a Tuesday note. The signals are in limbo mode as they have yet to confirm a new bull market in stocks, and have yet to flash a bearish reading that would suggest a decline is imminent.
"The Dow Industrials and Dow Transports have confirmed the tactical US equity market rally from March, but the Dow Theory has yet to confirm a primary bull market from late 2022. The Dow Industrials need to break above the 11/30/2022 peak at 34,590, while the Dow Transports need to clear the 2/2/2023 peak at 15,641 to confirm a bull market. Until then, the risk remains for a bifurcated US equity market," BofA technical strategist Stephen Suttmeier said.
Looking at the NYSE Composite Index and its corresponding NYSE advance-decline line, Suttmeier identified a negative divergence as the former recently made a higher high and the latter recently made a lower high. For this tactically bearish signal to dissipate, the NYSE advance-decline line would need to print a series of higher highs to confirm the bullish move seen in the NYSE Composite index.
United States United States Latest News, United States United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Analysts think these stocks in underperforming sectors are due for a comebackWatch these Wall Street underperformers for a potential comeback in the second half of 2023.
Source: CNBC - 🏆 12. / 72 Read more »