Daily Chart Report ? Thursday, December 1st, 2022

Dow Jones Industrial Average quite close to retracing 75% of its decline since January
[Past performance is no guarantee of future results] pic.twitter.com/9NpmZpcwvJ

— Liz Ann Sonders (@LizAnnSonders) December 1, 2022

Here's another bullish takeaway from the recent strength.

S&P 500 >5% back-to-back months. This type of persistent strength isn't the sign of a bear market rally, but likely the start of a new bull.

Previous 13 times it happened? Higher yr later every time and up 22.2% on avg. pic.twitter.com/WLH7Ww8Fwd

— Ryan Detrick, CMT (@RyanDetrick) December 1, 2022

Since 1950 there have been 3 times as many positive (54) as negative (18) Decembers for $SPX: pic.twitter.com/i9L7AO0Iho

— Optuma (@Optuma) December 1, 2022

Stocks are going up in price exactly where they historically go up in price. pic.twitter.com/y1tyjRSw0B

— J.C. Parets (@allstarcharts) December 1, 2022

January is the strongest month in year 3 of Pres Cycle up 83% of the time on avg return of 3.4%.... pic.twitter.com/2WkizFpSUb

— PhilipPorterEvans (@Porter_Evans_) December 1, 2022

Month-end "Inverse Traffic Light" update puts the $SPX back into the CAUTION zone & out of the DANGER zone.

Nov 30th was a nice, high-volume, bullish candle... and if it can hold the 3,900 level (or at worst, the 3,700 Nov higher-low), bulls could start coming out of the gates. pic.twitter.com/FvwYdyD8ys

— Adam D. Koós, CFP®, CMT, CEPA (@AdamKoos) December 1, 2022

Dow has been leading since the summer, could we see a rotation back to small caps into year-end? Momentum is making a lower-high as the ratio b/w Dow and R2K hits the prior high. $DIA $IWM pic.twitter.com/xlHvWw2Pfz

— Andrew Thrasher, CMT (@AndrewThrasher) December 1, 2022

The 12-month gap between Value and Growth performance is at its second-widest negative extreme going back to 1976. @NDR_Research pic.twitter.com/0Ovua5pqRk

— Rob Anderson (@_rob_anderson) December 1, 2022

Trendline violations, overbought readings, higher highs

This is how new uptrends start, and we're seeing a lot of it from international indexes right now $EFA pic.twitter.com/GhrFBogUHN

— Steven Strazza (@sstrazza) December 1, 2022

Yesterday, Emerging Markets ETF $EEM printed a 2nd consecutive PnF buy signal for the first time since Nov. 2020 and Developed Markets ETF $EFA reentered a positive trend for the first time since May 2020. However, each fund is now trading in heavily overbought territory. pic.twitter.com/z5J1ZCyY7j

— Nasdaq Dorsey Wright (@DorseyWrightNDW) December 1, 2022

HYG -a generous 50% retrace of last swing down. pic.twitter.com/tBBWDfNTRh

— Linda Raschke (@LindaRaschke) December 1, 2022

Today, US Dollar Index $DXY closed below its 200-Day Moving Average for the first time since June 2021, ending its longest streak above its long-term average in history. pic.twitter.com/8eL7dhzzf4

— Alfonso De Pablos, CMT (@AlfCharts) December 1, 2022

Human nature. Groupthink. The madness of crowds. Falling in love with the trend. Call it what you like.
Same as it ever was… #sentimentrader pic.twitter.com/ULMGHvaCoZ

— Jay Kaeppel (@jaykaeppel) December 1, 2022