DC Lite #532

1. Used car prices. Manheim’s Used Vehicle Value Index rose 2.4% MoM (and 2.4% YoY) in January to 210.5, the highest reading since Sep’23.

2. Panic Index. “Our US Panic Index is now a 9.2 / 10 - Going back 10 years, here is what happened after we crossed above 9.”

3. Nasdaq reversal. The Nasdaq bounced 2% after 3 straight ≤ -1% days. That’s happened 28 other times, with more than half of those instances clustering during the early 2000s. Signals that occurred outside that range were generally bullish.

4. Mag 7 vs. Energy. “The Mag Seven topped out vs the energy sector in December of 2025, at the same level it did back in October of 2020, when $XLE bottomed and ran 250% over the next two years... The Mags continued their ascent for another 12 months, but they lagged energy, which itself was breaking higher. Markets rarely rinse and repeat that easily. But price is confirming...”

5. Dow Theory. “At or near their recent record highs are the DJIA and the DJTA. So Dow Theory is confirming that the bull market remains intact.”

ICYMI