‘Higher Highs’ not yet forthcoming

What I am seeing in many markets and securities is akin to the attached chart of the S&P MidCap 400 Index.

Trend lines have been held or broken, some recent lows were higher than the previous lows…..

but I’m watching whether ‘higher highs’ are made and breach their recent peaks and not so much their all-time highs.

For the S&P MidCap 400, that ‘recent’ high that needs to be broken lies at 2,646.

Until any such break, it remains a range bound trading market where trends are unconvincing and weak.

Incidentally, today’s ‘daily’ price action (unlike the weekly chart shown below) saw many indices and stocks perform a bearish outside reversal day.

It is worth noting albeit one day doesn’t make a trend.

January 19, 2023

by Rob Zdravevski

rob@karriasset.com.au