Bears control the S&P 500 now. Plus: This small stock trades like it could have big news
By Lawrence G. McMillanFollow
Last Updated: July 27, 2024 at 9:15 a.m. ET
First Published: July 25, 2024 at 1:20 p.m. ETShareResize
We now have a pattern of lower highs and lower lows — and that is the hallmark of a bearish market.PHOTO: UNIVERSAL PICTURES VIA AP
Referenced Symbols
- SPX1.11%
- VIX-11.21%
- SPY1.12%
- EBS1.23%
- WBA2.69%
- DJIA1.64%
- INSG-1.61%
- CORZ8.50%
- INOD14.09%
- FIVE0.31%
- NKE1.61%
- AKAM0.62%
- UNP2.13%
- CRM2.41%
- RHI3.99%
The S&P 500 index
SPX1.11% has quickly turned down from its all-time highs. In fact, a pattern of lower highs and lower lows has already emerged, which is quite bearish. We are no longer recommending a “core” bullish position, and we are acting on new sell signals.
How did this happen so quickly? SPX made new all-time highs in the first half of July, and there was no negative divergence in place. In fact, small caps were beginning to come alive for the first time in quite a while. Even now, with SPX having broken support, the small-cap indexes are outperforming (although they are also fallin