Updated Models & Spotlight Chart 1/19/2025

Was that "the" Low? Using Data To Know The Answer

Stocks rallied on the week, advancing almost 3% with leadership coming once again from energy and financials. XLE rose 6.3% on the week. Gold also rallied and is now less than 2% from its high. Last week’s Spotlight Chart highlighted the lack of expanding ‘oversold’ conditions in stocks, creating a divergence of data and the lower-lower in price. This was successfully followed by this week’s price gain and puts the Index back near the prior minor swing high that bulls will look to take out to confirm their control of the market. One way we can confirm this is through the evaluation of the breadth thrust data, shared every week below in the Market Update post. I look at this data in this week’s Spotlight Chart to show what I’m watching for to gain confidence the recent low is “the” low.

Summary of Models

Index & Sector Performance Summary