With the proliferation of cup-and-handle formations across several sectors and themes, it’s difficult to make a bearish case for the stock market. 

From time to time, I have referred to the AAII Sentiment Survey reflecting on the bearish/bullish sentiment readings. Back on November 1, the bearish sentiment had risen to… 

Financials showing better relative strength behavior, their patterns have been improving pretty steadily here and while they’re not forefront leaders, they are participating more significantly in the market recovery. 

From time to time, I have mentioned the importance of small- and mid-cap stocks as cornerstones of a significant and sustainable market advance.

In a single session, the major stock indices approached, or even exceeded in the case of the Nasdaq, their near-term resistance levels. 

Yogi Berra said it: “It’s Déjà vu all over again.” That phrase so aptly applies as Fed Chairman Powell comes out with a statement that puts a scare into the stock market indicating that the Fed is still concerned about inflation. 

The CBOE Volatility Index could hold in the mid-teens here over the short run and even beyond. I think with the market becoming a bit quieter, that is a good thing. 

I recently made the case that with the major market indices violating their respective 200-day moving average levels, we could see a reversal — a technical “head fake.”