Good morning,
I know I initially said I would send this on Wednesday, but I tackled it early and figured it would serve as a good complement to the Monday Morning Playbook which came out earlier this morning.
This week’s Overtime will cover the technicals and trends for major indexes, including:
The S&P 500
The Dow Jones Industrial Average
The Dow Jones Transportation Average
The Nasdaq 100
The Russell 2000
MSCI EAFE Index
MSCI Emerging Markets Index
S&P 500
Trend Score: 4/4
Technicals
The S&P 500 has ridden in a solid uptrend channel since the beginning of 2024. While there might be divergences, or rotation or whatever else going on underneath the surface, the technicals for SPX have been unfazed. Momentum measures also supportive with RSI-14 staying in the bullish zone above 50 since the October bottom and the MACD staying consistently positive.
Dow Jones Industrial Average
Trend Score: 4/4
Technicals
The trend score is here to keep us honest and with a 4/4 we never want to get too cute. But if you zoom in, you can see a potential head and shoulders pattern playing out so far in February. This is only relevant if the neckline at 38,109 is broken and the measured target would be 37k, the previous ATHs and where we recently found support twice.
Dow Jones Transportation Average
Trend Score: 3/4
Technicals
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