loader image

The Top 2 Sectors In a Chaotic Market Giving Mixed Signals to Start 2024

by | Jan 9, 2024

Join Roger for a ProTrader Dashboard demo LIVE at 1 p.m. ET TODAY — any trade ideas that pop up are yours to take!

Market divergences and contradictions are two very different forces.

One points to market direction, the other points to chaos.

Right now, we’re dealing with the latter, and that’s not a positive thing.

Let’s start with a discussion of the first one.

Market divergence is when price action moves in a direction that is opposite a technical indicator.

For example, in this case, the price action of the SPDR S&P 500 ETF Trust (NYSEArca: SPY) is divergent to the short-term MACD indicator. This implies in both areas noted in the chart that the price action will move sideways or downward in the days ahead. This was the case from the end of November to the middle of December.

I love divergences… While not perfect, they consistently point out turns in the market.

Right now in the chart below, the divergence is acting as a warning to traders to not get too bullish on Monday’s rally just yet.


Speaking of Monday’s rally… sigh.

We now have market contradictions… right at a time when some clarity would be really helpful.

I’m talking about the price action of the first five days of the new year.

Many are aware of this helpful indicator that works pretty well to point out the direction of January… until it doesn’t.

You see, the different S&P 500 products are contradicting themselves…

Should we look at the S&P futures, the index itself, the equal-weighted RSP ETF, or the weighted SPY to measure the strength or weakness of the move?


“Stock Trader’s Almanac” posted that the first five days are going down in the 2024 record book as… NEGATIVE.

Since they are the creators of the indicator, we must heed.

To add insult to injury, we now have two negatives: A Santa rally failure and a first five days failure.

At this point, my thoughts are that we still end the year positive, but only slightly.

Here’s what sticks out to me right now: The Health Care (XLV) and Utilities (XLU) sectors. They are the strongest sectors so far this year. That’s interesting to me, given that XLU ranks as a flight-to-safety asset.

Think and win!

Celeste Lindman
Celeste Lindman Trading

If you haven’t already, join my Telegram channel here for frequent trading insights and market musings!

*This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk.

P.S. Want to See Roger’s ProTrader Dashboard in Action?

Thanks to Roger Scott’s new ProTrader Dashboard, through last week, he’s been able to reel in 61 wins in 65 trades over the last TWO months!

Some were big, some small and, yes, he also had the four losers — but he said he’d take that winning percentage all day, and I can’t blame him !

It’s the only trading tool I know of that tracks the stocks institutional traders are buying or selling in real time…

And you’re in luck because I’m going live at 1 p.m. ET TODAY, Jan. 9, to go over exactly how it works. I’m also likely to drop some actionable trade ideas you can take while looking over my shoulder!

All you have to do is join me at 1 o’clock to see what all the fuss is about — you won’t be disappointed…

Just Go Here to Join Him Now!

Exported with Wordable
WRITTEN BY<br>Celeste Lindman

Celeste Lindman

What to read next

Have any questions? Contact Our Customer Service Team

Share via
Copy link