SMO Exclusive: Market Strength Score 2022-10-12 (-93%) vs. 2023-12-29 (+85%)

Brian Degracia

30 Dec 2023 • 1 min read

Based on the objectively-determined Strength Score the market is currently in Zone 3 as of 2023-12-29.

Are we closer to a U.S. stock market bottom than a top? Perhaps a ridiculous question given the recent rally. Not ridiculous: an objective method to answer that question in any market environment.

See below graphics showing the 10/12/22 -93% Market Strength Score (Zone 6, Weakening Late) and the 12/29/23 +85% score (Zone 3, Strengthening Late). (10/12/22 was the market low post Covid-recovery).

The October 12, 2022 reading provides context for the current reading.

Here's another relevant Strength Score post that illustrates the value of this analysis.

Current market status

🔹 Strength Score: +85% (scale -100% to 100%)
🔹 Zone: 3, Strengthening – Late
🔹 Action(s): No new Shorts

At this 10/12/22 cycle low after the Covid-related decline and recovery, the Market Strength Score was -93%, or Weakening - Late (note the red "cloud" marking the score).

The current Market Strength Score is +85%, or Strengthening - Late (note the green "cloud" marking the current score).

There is never any telling how long the prevailing positive or negative strength score will last.

All it does is tell you what is. Never a why, or for how long.

That’s all it can do. But this is enough to
🔹 crush market confusion and emotion,
🔹 enforce discipline, and
🔹 prevent unforced errors.

From here, the rest is up to you.

Current market status

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