The Lines, Chico...They Never Lie!

The S&P 500 is still negotiating the 4380 area, as seen below on the updated daily chart. This remains a level we have been observing with Members, even before the sharp rally over the last week and a half or so, with the light blue line, horizontally, remaining a constant on my chart. As they say, the lines, chico, they never lie. 

While this test plays out, small caps in the IWM filled one major gap below from late-last week at $170, with $165.60 lurking below as another open gap.

Bulls are pining for that runaway squeeze into the holidays. So, once again, the reaction either way to these tests should shed light on whether the recent rally was simply a short-lived squeeze or instead the beginning of a sustained bull run into 2024. 

Earnings, to my eye, are a push so far this week, with HOOD UPST getting slaughtered while RBLX DDOG have been some notable big winner thus far. Tonight, we have AMC DIS TWLO, although I still do not think this week's group of earnings represents market movers, per se. NVDA still remains on the earnings calendar in a few weeks, however. 

Overall, the issue is still whether we are merely digesting the big rally before another a push higher, as bulls contend, or instead seeing the move fizzle out before a rollover. I still defer the overall downtrend in the IWM and many key sectors as evidence of the rally being guilty until proven innocent, especially with how cocksure many seem to be about that year-end rally being a lock.