top of page
  • Writer's pictureT. Livingston

Indexes Show Signs Of Accumulation With A Major Low Likely In Place

This is a very positive sign for stocks as it indicates that further rate hikes are unlikely. When we look at the daily charts of the S&P 500, Nasdaq Composite, and Russell 2000 we can see a shift towards accumulation has taken place and that the market is showing a change of character.

After showing supportive action near the 200-day moving average earlier this month, both the S&P 500 and Nasdaq now look to be forming the right sides of large bases. I still believe the 1990 vs 2022 comparison still holds some credibility. If that scenario continues to play out, a strong uptrending market may not be too far away. In addition, seasonality is also playing into the bulls' favor as the November, December, and January months are usually one of the stronger periods for the market.

Beneath the surface, New Highs-New Lows is starting to improve. The extreme reading in October most likely flushed out the remaining weak hands. We can also see this on display when looking at a chart of the put/call ratio.

Individual stocks still haven't begun to move with the momentum I'd like to see, but we are definitely starting to see constructive action. NVDA, PLTR, MDB, COIN, SMCI, MNDY, and NET are some of the names I'm keeping on my watchlist to see if they can set up potential buy points.


Crypto is clearly in a new bull market. Major buying has come into Bitcoin and Ether over the last few months. Solana has also been acting extremely well.

Risk right. Sit tight.

To learn more about swing trading strategies, stock market trading, and how to trade cryptocurrencies, visit my course page.

Full Disclosure: I currently own SPY, QQQ, Bitcoin, and Ether.

Disclaimer: This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained in this post constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned in this blog or the associated Twitter and Instagram feeds. The stock or stocks presented are not to be considered a recommendation to buy any stock or stocks. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.


Commenting has been turned off.
bottom of page