Overtime

Major index technicals

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

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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.

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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.

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Dow Jones Transportation Average

Trend Score: 3/4

Technicals