A Buying Climax typically concludes a long term uptrend. The rally phase from the October low of 2023 has these climactic characteristics. This advance comes after a major trend that began in late 2022. The steady upward march in the 4th quarter of 2023 was broad and powerful, which created much enthusiasm among the public. Magnificent-7 growth stocks set the pace and also dominated the performance of the major stock indexes. Breadth stopped rising as 2024 began as many stocks stopped advancing with the ‘Mag-7′ which have mostly Marched Alone in January and February of the new year. Does this narrowing of breadth and concentration into the ‘Mag-7′ stocks represent a warning of a trend reversal?
Swing trading Point & Figure studies are signaling the completion of upside price objectives. Could this indicate the fuel tank propelling higher prices is nearly empty? If so, what could the fate of the stock indexes be in 2024, and beyond? In the latest episode of Power Charting, we look at the PnF count objectives, and the waning breadth characteristics with these questions in mind. Also, the Decennial Seasonal Patterns are consulted for the possible trend of prices as 2024 unfolds, and beyond.
Wyckoff studies of the initial three years of this decade lend a perspective to the Decennial View. We take a look.
All the Best,
Bruce
@rdwyckoff
Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.
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Bruce Fraser, an industry-leading “Wyckoffian,” began teaching graduate-level courses at Golden Gate University (GGU) in 1987. Working closely with the late Dr. Henry (“Hank”) Pruden, he developed curriculum for and taught many courses in GGU’s Technical Market Analysis Graduate Certificate Program, including Technical Analysis of Securities, Strategy and Implementation, Business Cycle Analysis and the Wyckoff Method. For nearly three decades, he co-taught Wyckoff Method courses with Dr.
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