Are US Stocks in Trouble?

by Justin Bennett  · 

February 16, 2024

by Justin Bennett  · 

February 16, 2024

by Justin Bennett  · 

February 16, 2024

Are US stocks set for a correction despite the dip-buying frenzy since November?

In today’s video, I discuss some key technicals on the S&P 500 (SPX) that point to trouble ahead, and an NVDA earnings call next week that should have investors sweating.

Plus, the latest on the US Dollar Index (DXY).

Let’s get started!

The SPX is trading at a critical area this week while showing signs of fatigue.

I’ve been warning VIP members of this area all week.

The market is bumping its head on a trend line from December 2022, and barely holding above trend line support from October 2023.

Although the Relative Strength Index (RSI) isn’t something I use in my trading, the daily time frame shows ongoing bearish divergence.

That’s been the case since last December.

We also have other indices like the Nasdaq that reached its full Fibonacci extension from the “dot com” correction at 17,828.

Even the Dow Jones Industrial Average is trading just below its full Fibonacci extension from the 2008 Great Financial Crisis.

While these aren’t reasons to go short, they are concerns for the US stock market.

As for the SPX, it will take a sustained break below the November trend line to secure a breakdown and expose 4,800.

Alternatively, a sustained break above 5,080 would signal further strength.

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