Short-Term (days/weeks) : further modest weakness to end-February for US equities, use as a buying opportunity

Short-Term (days/weeks) : further modest weakness to end-February, use as a buying opportunity
The S&P 500 and key US equity indices were very slightly lower last week, as
expected, turning down at trend resistance as Daily OB/OS momentum indicators
turned down at mostly moderately overbought.
At the end of the week, the S&P 500 was testing 4080 target support from the
September and December price highs ; Daily OB/OS momentum was still
modestly overbought.
The NYSE ITI turned down in the 70% range last week, suggesting possible
further modest price weakness (-2% DJIA/S&P 500) over the next two weeks or
so : see analog chart, page 2. However, updated best fit DJIA/Pre-Election Year
analogs suggest a mostly still-positive short-term trend : see analog chart, page 3.
On balance, therefore, possible further modest short-term weakness is possible to
month-end and should be used as a buying opportunity. See Daily OB/OS
Charts, attached.
Intermediate-Term (weeks/months): still positive
US intermediate indicators of breadth and momentum were almost all lower
week-on-week at the close on Thursday, including NYSE and Nasdaq 100
Intermediate Term Indicators, Percentage of S&P 500 Groups with Positive
Money Flow and Money Flow of the Average NYSE Stock. The Nasdaq
Composite Intermediate Term Indicator was sharply higher. The Percentage of
S&P 500 Groups with Positive Money Flow and Nasdaq 100 Intermediate Term
Indicator were both sharply lower.
US equity indices were all sharply lower week-on-week at the close on
Thursday : the DJIA turned down at trend resistance from the 2022 high and is
now testing support from the October low, but the Nasdaq 100 and Nasdaq
Composite are both still above next price supports at the October highs. See
Weekly Charts, attached.
Mostly lower intermediate indicators and equity indices suggests an intermediate
inflection point. The NYSE ITI analog model points to modest weakness to end
February, then a rally to new short-term highs to mid-April : see analog chart,
page 1. DJIA Pre Election Year analog model still suggests a positive
intermediate trend (weeks/months) for the DJIA/S&P 500 : see analog chart,
page 2.
Key Takeaway : on balance, the inter mediate outlook (weeks/months) for
US equities remains positive and weakness to end February should be used as a
buying opportunity.