We only have two out of nine indicators flashing green on my bull market behavior checklist.
Here is the table:
(right-click and open image in new tab to zoom in)
About the Table: If you’re following me on X, you probably know that I like to know what type of environment we are in before allocating capital.
This checklist is a mix of breadth, price & macro’ish indicators, which is designed to show turns toward risks or opportunities.
I use a mix of US and global market data and throw in a sprinkle of macro data. I do this because I like to have a bird’s eye view and not be focused only on one area of the market.
These indicators I use are not signals but measures that reflect the current trading environment.
The Takeaway: Currently, my checklist is indicating a not-so-healthy bull market.
It’s the lowest reading in over a year.
The last time the checklist showed two out of nine was in November 2023. This situation only persisted for a few weeks before the bulls regained control, pushing the checklist back into a more favorable bull market zone.
Will the Bulls step in again and regain control like they did last November? Time will tell.
However, for now, this is an unfavorable backdrop for stocks.
Grant Hawkridge | Chief Aussie Operator, All Star Charts
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