Primary Market Trend: HiLo Market Barometer - 10/20/23

Our Chart of the Day is intended to be a standalone technical chart. We use them to highlight open positions, stocks on our watch list, or indicators that we believe are important, or just interesting at the time. It is not a directional market call. Feel free to share them with others who may be interested.

• Everyone is watching and hoping for US long term interest rates to pullback, possibly providing some relief for stocks.

• In that context, yesterday, we finally had New 52-week highs outnumbering new 52-week lows (black bars and green bars).

• With the S&P500 continually rejected by the 50 Day Moving Average (blue line) over the last week, we are going to want to see more green bars (new highs) and black bars (new highs outnumber new lows) if the rally since last October is going to resume.

• New highs vs. New lows is to equity investors like a barometer is for sailors. Rough weather should not be a surprise if you have primarily red output (more 52 wk. lows) in this data. So, depending on how much rough weather you can take, you get your rain gear, or batten down the hatches, and maybe lighten the load until the weather improves.