2024 Forecast…

Monday 1/8/24. Market Monday: The Week Ahead

My Prediction

I show the Dow industrials on the daily scale.

I’ve highlighted the recent swing low and high values. Taking the Fibonacci values of that swing gives an indication of where the Dow might retrace. Keep in mind that I’ve proven that
Fib retraces don’t work.

To put it differently, price will retrace at common values of 38%, 50%, or 62% as often as they retrace any other number. I didn’t see any value for a retrace where stocks would stop.

Circled in green is a knot where I think a retrace will stop. Of course, price has to get there first. We might see a drop that far in February, if the
2024 forecast (slide 4) is correct.

A Brief Look Back

The following is a brief review of how the markets performed over time. The numbers refer to the close-to-close move in the Dow industrials.

Tuesday: Up 25.5 points.

Wednesday: Down 284.85 points.

Thursday: Up 10.15 points.

Friday: Up 25.77 points.

Saturday: Holiday or other weird event!

For the Week…

The Dow industrials were down 223.43 points or 0.6%.

The Nasdaq composite was down 487.28 points or 3.2%.

The S&P 500 index was down 72.59 points or 1.5%.

Year to Date…

Dow Industrials

     0.9% down from the high of 37,790.08 on 01/02/2024.

     0.4% up from the low of 37,323.82 on 01/05/2024.

Nasdaq

     2.4% down from the high of 14,887.80 on 01/02/2024.

     0.3% up from the low of 14,477.57 on 01/05/2024.

S&P 500

     1.2% down from the high of 4,754.33 on 01/02/2024.

     0.3% up from the low of 4,682.11 on 01/05/2024.

Options Expiration

No options expire this week.

Swing Traders: Pivot Points

The following is based on an SFO article in December 2004 by John Seekinger, titled, “Take a
two-dimensional approach.” He offers these tips.

• Seekinger doesn’t look at the range of S2 to R2 as support and resistance levels. Rather, he considers them oversold (S) and overbought (R) areas.
• S2 to R2 range of values across daily, weekly, and monthly periods: If two values are close together then they lend more significance to the area.
• If the market trends on day 1, the odds rise tremendously that the market will be range bound between daily S1 and daily R1 the next day.
• In a quiet market when traders are waiting for an important earnings announcement or economic report, look for daily R1 and S1 levels to hold and for the market to return to the daily pivot.
• A move outside of daily R1 or S1 usually does not mean a breakout.
• The odds suggest that the entire week’s price action will remain between weekly R2 and S2.
• Avoid going long when the market moves above weekly R2 (it’s overbought) and avoid going short when price moves below weekly S2 (oversold).
• Consider going short at weekly R1 or long at weekly S1 with a profit objective of the weekly pivot.
• Consider going long at weekly S2 or short at weekly R2 with a profit objective of weekly S1 or R1, respectively.

Here are the formulas:

Pivot point: P = (H + L + C)/3

First resistance level: R1 = (2 * P) – L

First support level: S1 = (2 * P) – H)

Second resistance level: R2 = P + (R1 – S1)

Second support level: S2 = P – (R1 – S1)

H = high price , L=low price, C=closing price

Earnings, Chart Patterns & Industries

Earnings season will be starting in about 8 days.

Here’s a symbol list of 114 chart and candlestick patterns (13 “investment grade” candle patterns) found in today’s securities using my version of Patternz:
DDD, AXDX, AMD, ALK, AEO, ANIK, APA, AAPL, ADM, ANET, ADP, BALL, BSET, BA, BAH, BFH, CX, CHD, CIEN, CTAS, CLNE, CLF, CTSH, ED, CONN, CSGS, DFS, D, DRQ, EXP, EOG, EXC, FE, GES, HSII, HSIC, HOLX, HWM, NVTA, JAZZ, KLAC, LHX, LDOS, LNC, RAMP, LMT, MTSI, MGY, MCHX, MTRX, MGEE, MSFT, MLKN, MOS, MUR, MYGN, NKE, NI, NOC, OXY, PRFT, PETS, PPL, PG, RTX, ROK, ROST, R, SBH, SAND, SAIC, SRE, SHOP, SXI, SUM, SRDX, SNPS, TPR, TFX, TEVA, TRV, TZOO, UGI, UNH, VLO, VECO, VC, ZBRA, IHE, FXI, MXI, SLV, EWM, EPP, PBE, PEJ, PXJ. Click this link for details (pattern type, start and end dates).

For a list of small patterns (those a few days wide) click this link.

The below industries were the best (rank 1) or worst performing of those I follow.

— Thomas Bulkowski

Friday 1/5/24. Pattern Trading Setups for the Weekend.

$ $ $

Here’s a symbol list of 156 chart and candlestick patterns (13 “investment grade” candle patterns) found in today’s securities using my version of Patternz:
DDD, ACN, AEIS, ALK, ALL, AMZN, AXP, AFG, ANIK, AAPL, AMAT, ADM, ADP, AVNT, BSET, BECN, BZH, BIIB, BOOT, BFH, BCO, CBT, CE, CF, CHS, CIEN, CLNE, CLF, CNO, CNX, CGNX, CMTL, ED, COP, CXW, GLW, CSGS, XRAY, DVN, FANG, DFS, D, DOV, DRQ, EXP, ELV, EOG, EPAM, EFX, GNW, GPRO, HL, HSII, HP, HNI, HOLX, JBHT, HUN, HURC, IDXX, ITW, PODD, ITGR, IBKR, INTU, NVTA, JNJ, KALU, KELYA, KMT, KEYS, LHX, LLY, RAMP, LMT, LOW, MTSI, M, MGY, MRO, MTDR, MTRX, MGEE, MSFT, MOS, MUR, MYGN, NBR, NKE, NOC, NWPX, OXY, OMCL, OTEX, PTEN, PEN, PCG, PXD, PLXS, RRC, RTX, RHI, ROK, RES, R, SBH, SAND, SLB, SMTC, SKX, SWN, SRDX, TFX, TXN, TMO, UHAL, VFC, VLO, VECO, VRSN, WU, WWW, ZBRA, IYC, IYE, ITB, IEZ, IHE, BOTZ, IGV, MXI, IEO, EWK, EWH, EWM, EPP, TUR, PXJ, PHO, XLY, XLE, XLI, XAR, UNG, VIS, VAW. Click this link for details (pattern type, start and end dates).

For a list of small patterns (those a few days wide) click this link.

$ $ $

You can find setups based on a Fibonacci retrace by clicking on the link.

The following patterns were found manually, not using Patternz. Mr. Bulkowski has excluded any securities he owns from appearing in the list. However, he may add any of the securities listed to his portfolio at any time, just as you can.

In the table below, the red and green colors are based on the historical breakout direction for the associated chart pattern. If a high and tight flag appears, the start and end dates highlight the flagpole only and not the flag.

For details about the chart patterns, click here.

— Thomas Bulkowski

Thursday 1/4/24. Intraday Market Direction: Nasdaq

Weekly, since inception on 6/14/2011:

     The prediction of the Nasdaq closing higher has been right 267/477 or 56.0% of the time.

     The prediction of the Nasdaq closing lower has been right 74/157 or 47.1% of the time.

Since I post this the night before, check how the futures are trading before market open. Large moves can affect the opening direction.

$ $ $

I show a picture of the Nasdaq composite on the 5-minute scale.

Let me address the big picture first. The CPI has turned bearish, reading 8.8, which is close to the lowest it can go (0). I believe the retrace that I’ve been looking for has begun. That means a drop to
about 14,300, matching the horizontal move in the index in late November.

As to the chart, the green circle highlights weakness in the index. It has closed below the red rectangle bottom. That suggests, but does not guarantee, that the index is headed lower.

$ $ $

Here’s a symbol list of 261 chart and candlestick patterns (13 “investment grade” candle patterns) found in today’s securities using my version of Patternz:
DDD, ABT, ACN, ADBE, ADTN, AEIS, AMD, A, AKAM, ALK, AA, AMN, APH, AMAT, ACGL, ANET, ARW, ADSK, ADP, AVNT, AXS, BMI, BCPC, BZH, BERY, BIO, BMRN, BA, BCO, BRKR, CBT, CDNS, CALM, CE, CX, COR, CENX, CDAY, CRL, CHD, CLNE, CLF, CLX, CGNX, ED, CSGP, COTY, CRH, CCK, CSGS, CW, DFS, DSGR, ^DJT, ^DJI, DOV, EXP, ELV, EME, EPAM, EFX, FDS, FDX, FE, FIVN, FLEX, FORM, FTV, FWRD, FCX, IT, GD, GE, GIS, GMS, GPRO, GGG, GFF, HL, HSIC, HOLX, HD, HON, JBHT, HUN, NSP, IIIN, PODD, INTC, IPAR, IPG, INTU, ISRG, NVTA, IRM, JAZZ, JBLU, KALU, KELYA, KMT, KEYS, KSS, KLIC, LHX, LH, LANC, LLY, RAMP, MHO, MTSI, M, MANH, MAN, MLM, MRK, MLKN, MCO, MOS, MLI, MUR, MYGN, ^IXIC, NWL, NEU, NKE, NWPX, NOVT, NTNX, ORI, OMCL, ON, OTEX, ORCL, OR, OMI, PKG, PKE, PATK, PDCO, PCTY, PEN, PETS, PPG, PGR, PEG, PSTG, QTWO, QCOM, RMBS, RRC, RNG, ROK, ROST, RGLD, R, CRM, SBH, SAND, SEIC, SMTC, NOW, SHOP, SKX, SMAR, LUV, SWX, SWN, SPSC, SXI, SUM, SRDX, SNPS, TFX, TPX, TER, TKR, TOL, TSCO, TREX, TWLO, UHAL, SLCA, UNH, VECO, VEEV, VC, WRB, WSO, WPM, WOLF, WWW, ZBRA, IYM, IAI, IYC, ITB, IHE, FTEC, FDN, QTEC, FXL, BOTZ, QQQ, ICF, IHF, IAT, IEV, IGV, MXI, IXN, SOXX, SLV, EWA, EWO, EWK, EEM, EWQ, EWG, EWH, EWI, EWJ, EPP, EWS, EZA, EWY, EWD, EWT, QLD, PBE, PEJ, PHO, ROBO, XLY, XHB, XAR, XLK, UNG, USO, SMH, VAW, MGK, VONG. Click this link for details (pattern type, start and end dates).

For a list of small patterns (those a few days wide) click this link.

$ $ $

The following table shows where Fibonacci retrace values of the day’s high-low range are plus pivot points, calculated on the Nasdaq composite, sorted by value. When several are near each other (small differences),
the area might act as support or resistance.

— Thomas Bulkowski

Wednesday 1/3/24. 2024 Market Forecast

Here’s the updated 2024 market forecast, presented in slider format.

$ $ $

Here’s a symbol list of 172 chart and candlestick patterns (13 “investment grade” candle patterns) found in today’s securities using my version of Patternz:
MMM, ADBE, ADTN, AEIS, AFL, AKAM, ALKS, AXP, AIG, AMWD, AON, AAPL, ATR, ADSK, ADP, BCPC, BAX, BIG, BIO, BIIB, BKH, BRC, BBW, CDNS, CNC, CDAY, CHD, CLF, CLX, CNX, ED, COP, GLW, CSGS, CMI, DHR, DVN, DSGR, D, EXP, EIX, ELV, EME, EFX, EQT, EG, EXPI, FARO, FIS, FIVN, FORM, GIS, GILD, GMS, THG, HL, HOLX, HOV, INCY, IBP, IIIN, ITGR, INTC, IPAR, NVTA, JAZZ, KEYS, LHX, LRCX, LNC, LMT, MTSI, MANH, MTRX, MDC, MDT, MGEE, MU, MLKN, MS, MLI, MYGN, NTAP, NJR, NWL, NOVT, OGE, ORI, OTEX, ORCL, OMI, PATK, PDCO, PETS, PCG, PNW, PRU, PHM, QCOM, DGX, RL, RMBS, RTX, ROK, CRM, SBH, SEE, SEIC, SIGI, SCI, SHOP, SPSC, SRDX, SNPS, TRGP, TFX, TER, TEVA, TXT, TMO, TOL, TSCO, VMI, VECO, VRTX, WU, WMB, WSM, WSC, ZBRA, IAI, IYC, ITB, IDU, FDN, QTEC, FXL, ICF, IYH, IHF, IAT, IYZ, IEV, MXI, EWA, EWK, EWC, EWQ, EWI, EPP, EWD, EWT, EWU, IBB, DBA, PEJ, PJP, XLF, GLD, XHB, SMH, VHT. Click this link for details (pattern type, start and end dates).

For a list of small patterns (those a few days wide) click this link.

— Thomas Bulkowski

Tuesday 1/2/24. Slider Trading Quiz!

Weekly, since inception on 6/14/2011:

     The prediction of the Dow closing higher has been right 280/506 or 55.3% of the time.

     The prediction of the Dow closing lower has been right 52/110 or 47.3% of the time.

$ $ $

I show another slider trading quiz featuring Diamond top.

$ $ $

Here’s a symbol list of 111 chart and candlestick patterns (13 “investment grade” candle patterns) found in today’s securities using my version of Patternz:
A, ALRM, BCPC, BSET, BIIB, BMRN, BSX, BLDR, CAL, CPB, CNC, CNP, CHS, CLX, CNA, CL, CMTL, ED, CAG, CONN, CRH, CCRN, CSGS, DUK, EXP, EFX, EQT, EXC, EZPW, FIVN, FMC, FTV, HOV, HUM, JBHT, PODD, ITGR, INTC, IPAR, IPG, NVTA, LHX, LH, LPLA, MRO, MTRX, MLKN, MOS, MYGN, NFG, NFLX, NTAP, NWPX, OMC, OTEX, ORCL, OMI, OXM, PKG, PATK, PFE, PXD, PFG, DGX, RMBS, RLI, ROK, SBH, SCHW, SRE, NOW, SHOP, SLGN, STR, SKX, SPLK, SRDX, SNPS, TFX, UIS, UPS, VMC, WSC, XEL, ZBRA, IAI, IEZ, ICF, IGV, MXI, EWQ, EWJ, EWM, EPP, EWS, EZA, IBB, PBE, PXJ, ROBO, XLY, UNG. Click this link for details (pattern type, start and end dates).

For a list of small patterns (those a few days wide) click this link.

$ $ $

The following table shows where Fibonacci retrace values of the day’s high-low range are plus pivot points, calculated on the Dow industrials, sorted by value. When several are near each other (small differences),
the area might act as support or resistance.

— Thomas Bulkowski