{"id":198616,"date":"2023-11-03T08:16:22","date_gmt":"2023-11-03T12:16:22","guid":{"rendered":"https:\/\/ibkrcampus.com\/?p=198616"},"modified":"2024-01-24T12:11:57","modified_gmt":"2024-01-24T17:11:57","slug":"chart-advisor-observing-big-spx-advance","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/macro\/chart-advisor-observing-big-spx-advance\/","title":{"rendered":"Chart Advisor: Observing Big SPX Advance"},"content":{"rendered":"\n<p>By&nbsp;<a href=\"https:\/\/links.investopedia.com\/u\/click?_t=36ba8fa8372241d58b3bfc06997a4332&amp;_m=82e96b22df4f4e05bfbe1c2acb07a420&amp;_e=aWavHPLSvZjcGiSotB7cuND-biB2xIQpKNbb-eML11DGkQQFfxzytgDd_OZPngxGTNL1olQUuph5kqvWnXMjEITyqH_7eB_Bmehi2EZMgsa7xIq910ajsGSTAaU6xdV95UdRYkl2TO-G6586kTmVZoHl0N7VoOp-v_gOQC2zqWkNjkpbilt5JGBVqf_IEOKhreug0JRv3ZzyI-LZDhzxEoX4Ar2lbQx2XWpVwMdBCPMEwcQATNdztUMZXpOCRrajw5lpULcqMACKBTo7XeS2gL9kW6Q41wBnNjXtviDLbEiYuzr7d-UCldpf87st2xfeXRUBeBZhcdcp5rCBDUFar5O4csyd7njxtQri0W5iJ73FlFXv_jwD3seDl4Ndm83Kyw4scJvg9gkkRQafnodEhj51vi0uMgVWkbPwZeGM3__6wFJ_gKyE0xX5tlA7WY1YjSyMx9vBYf32MqhEdICJQINHB4jsFeJ0lm_xbZse7aY%3D\" target=\"_blank\" rel=\"noreferrer noopener\">Frank Cappelleri, CMT, CFA<\/a><\/p>\n\n\n\n<p><strong>1\/&nbsp;Clusters of 1% Gains<\/strong><\/p>\n\n\n\n<p><strong>2\/&nbsp;More Than a Spike?<\/strong><\/p>\n\n\n\n<p><strong>3\/&nbsp;Is the Dollar Topping or Digesting?<\/strong><\/p>\n\n\n\n<p><em>Investopedia is partnering with CMT Association on this newsletter. &nbsp;The contents of this newsletter are for informational and educational purposes only, however, and do not constitute investing advice. The guest authors, which may sell research to investors, and may trade or hold positions in securities mentioned herein do not represent the views of CMT Association or Investopedia. Please consult a financial advisor for investment recommendations and services.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-1-clusters-of-1-gains\">1\/ <strong>Clusters of 1% Gains<\/strong><\/h2>\n\n\n\n<p>The S&amp;P 500 now is +5.2% from the most recent October low point and up four straight days.&nbsp; The last two four-day winning streaks (from 10\/6-10\/11 and 8\/25-8\/29) ended abruptly, with strong multi-week declines soon to follow.<\/p>\n\n\n\n<p>There is one key difference so far this time. The SPX just logged its second straight 1% advance and its third in the last four days.&nbsp; We haven\u2019t seen a cluster of big advances like this since the index&nbsp;registered two straight 1% advances on&nbsp;<strong>June 1st&nbsp;and 2nd, which was part of three 1% gains in five days.<\/strong><\/p>\n\n\n\n<p>That\u2019s important to remember because&nbsp;<strong>June ended up being one of the<\/strong>&nbsp;<strong>best months<\/strong>&nbsp;in recent history, and it materialized after the relatively tough month of&nbsp;<strong>May<\/strong>.&nbsp; We\u2019ll recall that the SPX was flat in May,&nbsp;<strong>but 75% of the index declined month over month<\/strong>&nbsp;(as mega-cap Tech outperformed everything).<\/p>\n\n\n\n<p>Right now, of course, the index is trying to break the current three-month losing streak, during which 70% of its components declined each month. Thus, it would be an opportune time to leverage this bullish start.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"603\" height=\"523\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/11\/1.jpeg\" alt=\"\" class=\"wp-image-198617 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/11\/1.jpeg 603w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/11\/1-300x260.jpeg 300w\" data-sizes=\"(max-width: 603px) 100vw, 603px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 603px; aspect-ratio: 603\/523;\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2-more-than-a-spike\">2\/ <strong>More Than a Spike?<\/strong><\/h2>\n\n\n\n<p>ARKK is no stranger to big moves, but on Thursday, the ETF ripped higher by 8.4%, which was its biggest advance since November 10, 2022.&nbsp; The question, of course, is \u201chow much gas does it have left in the tank?\u201d<\/p>\n\n\n\n<p>As outlandish as it sounds, the monster move did not alter its chart structure, at least not yet.&nbsp; ARKK has been making lower highs since topping in late July.&nbsp; This is no different than many other ETFs and stocks.&nbsp; But we\u2019ve seen the ETF come back before.<\/p>\n\n\n\n<p>In fact, it rallied back from a sizable drawdown this past spring. Like now, that initial spike brought it right back to a noticeable supply zone, which it couldn\u2019t break through right away.&nbsp; It digested the first up leg, formed a bullish pattern, broke out and extended higher from there.<\/p>\n\n\n\n<p>For ARKK to extend this already big upswing again now, it would be helpful to replicate that same kind of behavior.&nbsp; One potential blueprint is noted below.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"599\" height=\"532\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/11\/2.jpeg\" alt=\"\" class=\"wp-image-198618 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/11\/2.jpeg 599w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/11\/2-300x266.jpeg 300w\" data-sizes=\"(max-width: 599px) 100vw, 599px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 599px; aspect-ratio: 599\/532;\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3-is-the-dollar-topping-or-digesting\">3\/ <strong>Is the Dollar Topping or Digesting?<\/strong><\/h2>\n\n\n\n<p>The US Dollar declined on Thursday, which helped risky assets do well across the board.&nbsp; If you haven\u2019t noticed, the dollar actually has stopped going up in recent weeks.&nbsp; In fact, it\u2019s now net flat since September 26th.&nbsp;&nbsp; Given what the stock market has done since then \u2013 mostly decline \u2013 we\u2019ll need more than a continued pause for equities to continue much higher.<\/p>\n\n\n\n<p>So, a lot will be riding on whether this slowdown in momentum actually intensifies and forces the dollar to more thoroughly reverse lower.&nbsp; While anything is possible, the Dollar took its time in forming a top the during the last three occasions.&nbsp; Sometimes that took longer and was a lot more volatile, like we saw at the end of 2022. Other times, it occurred more quickly, like what happened from earlier this year.<\/p>\n\n\n\n<p>We also should watch the 14-day RSI closely, as the Dollar\u2019s sell off intensified each time the indicator finally undercut the 50-threshold for good.&nbsp; Currently, the 14-day RSI is at 52.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"594\" height=\"525\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/11\/3.jpeg\" alt=\"\" class=\"wp-image-198619 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/11\/3.jpeg 594w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2023\/11\/3-300x265.jpeg 300w\" data-sizes=\"(max-width: 594px) 100vw, 594px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 594px; aspect-ratio: 594\/525;\" \/><\/figure>\n\n\n\n<p>&#8212;<\/p>\n\n\n\n<p>Originally posted 3d November 2023<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The S&amp;P 500 now is +5.2% from the most recent October low point and up four straight days.  The last two four-day winning streaks (from 10\/6-10\/11 and 8\/25-8\/29) ended abruptly, with strong multi-week declines soon to follow.<\/p>\n","protected":false},"author":186,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[14,16,18,6,9,22,23,26,3],"tags":[],"contributors-categories":[13686],"class_list":{"0":"post-198616","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-etfs","7":"category-forex","8":"category-macro","9":"category-north-america","10":"category-securities","11":"category-stocks","12":"category-technical-analysis","13":"category-text-articles","14":"category-traders-insight","15":"contributors-categories-investopedia"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Chart Advisor: Observing Big SPX Advance | Traders&#039; Insight<\/title>\n<meta name=\"description\" content=\"The S&amp;P 500 now is +5.2% from the most recent October low point and up four straight days. 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The last two four-day winning streaks (from 10\/6-10\/11 and...","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.interactivebrokers.com\/campus\/wp-json\/wp\/v2\/posts\/198616\/","og_locale":"en_US","og_type":"article","og_title":"Chart Advisor: Observing Big SPX Advance | IBKR Campus US","og_description":"The S&P 500 now is +5.2% from the most recent October low point and up four straight days. 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