economy
The charts are showing stocks are close to breaking out of their ultra-tight range
Todd Gordon walks investors through several market technicals as stocks try to break out of a tight range.
TL;DR
- The Nasdaq-100 has traded within a narrow 9% range despite major global events.
- Internal market indicators, like the Nasdaq TICK and NYSE TICK, are showing higher lows while the indices show lower lows, indicating a potential divergence.
- The put-to-call ratio's moving average has formed a double top, suggesting reduced fear among options traders.
- The advance/decline data shows higher lows compared to the S&P 500's lower lows, signaling drying up selling pressure.
- The Zweig Breadth Thrust signal, a rare indicator of significant buying, could trigger if certain conditions are met by March 27th.