Market MATH & Watchlist: 25-Oct-2024

Towards the H&S Target?

MATH: Momentum Anticipation and Trend by Homma:

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MATH last week: Click the link

The most comprehensive article on Breadth and Anticipation:

The 3 bulls framework for situational awareness

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As technical traders, We

“Anticipate, but confirm. Wish, but only react.”

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Trend: “Percentage of stocks above 10-DMA”

We are still below the bullish level of 50 and it’s 5-DMA.

So still in the “No Trade” zone.

We are infact in the oversold territory (below 20).

Momentum: Homma Mswing Score

The Mswing Score is still below the bearish level (below 50).

And we are approaching the oversold levels.

N50:

Bearish.

Below all key MAs.

Broke down of the neckline of a small H&S base.

But, currently at a level that acted as previous support.

The H&S target is still a bit deeper.

N500:

Bearish.

Below all key MAs.

Similar to N50, it is at a level that has previously acted as support.

In the medium term, the possibility of a larger H&S is open, if it bounces from this level (applies for N50 as well)

Net4% Movers:

Bearish.

4 out of 5 days in Red (below 0).

Anticipation:

In the short term, I anticipated a bounce as the markets are highly oversold in both the short and medium term.

I however have reservations about the strength of this bounce. I believe the key MAs would act as strong resistance for most stocks going forward.

In the medium term, till the key indices do not reclaim the key MA and build tighter areas around it, the bias will be sideways to negative.

The indices may put in a Lower-high which would be the Right side of a bigger H&S base which might lead to a breakdown.

A lot of handwaving here at this point.

But the fact remains, that markets are in the No-Money phase right now.

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Group Strength:

The strongest groups last week:

Index:

IT was the most resilient index.

Followed by Pharma-Health.

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Watchlists: