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S&P 500 Ekes Out Gain

April 13th, 2019

The S&P 500 was able to eke out a gain for the week. The S&P 500 was flat until Friday when it gapped open higher and basically traded sideways the entire day. Each time the index started to slip, buying pressure came in and halted the index from falling any further down. Now the index is so close to making a new all-time high, which is about 33 points away. The momentum of the S&P 500 picked up a little along with the momentum of many of the international markets. Market breadth, or the number of stocks participating, was pretty much flat for the week not showing any real signs of strength or weakness. US Growth Stocks are still out pacing US Value Stocks and US Large Cap Stocks are ahead of US Small Cap Stocks. Most of the positions were flat for the week or not much change in price….

Bulls Continue Advance

April 6th, 2019

The S&P 500 finished another week up. After the week’s price action settled, the S&P 500 was up 2.06%. The week started strong and ended strong. Price gapped higher Monday morning and finished on the high for the week and just about the high for the day on Friday. A gap is when prices open outside of the previous day’s price range. One of the most important questions when it comes to a gap in price is whether or not it is exhaustive (meaning a pending reversal of price action) or is it a break away gap (meaning a signal of strength and continuation of trend). The later in a trend a gap, the more likely it is a sign of exhaustion. We don’t know if this is the case, but we are coming up on yet again another area of resistance which is the all-time high of the S&P 500. Momentum and…

Bulls Hold On to Victory

March 30th, 2019

The S&P 500 ended up finishing the week up 1.2%. The beginning of the week started off very slow for the bulls, the bears really made it look like they had a chance to pull the S&P 500 lower, but they could not. Each time the index went down, there were buyers ready to step in and push price higher once again. The index did not surpass the high of last week, but they are certainly pretty close to doing so. At the end of the month we get the final number for our monthly readings. Long-term momentum of the S&P 500 remains positive while the MSCI All World (ex-USA) index momentum remains negative. When it comes to US Large Cap vs. US Small Cap, large caps take the win along with US Growth when US Growth and US Value are measured. No changes were made to the positions in the…

Bulls Get a Little Nervous and Start Selling

March 24th, 2019

The S&P 500 continues to lose momentum to the upside signaling we are close to a leg down. We have now seen three down weeks in the last two. The number of down weeks compared to up is one way to view the strength of the S&P 500. This past week generated a sell signal and now a trade below the 2800 level will cause the signal to trigger. The signal is the “set” in “ready, set, go.” The trigger is the “go.” Longer-term monthly momentum is still positive but of course weakening with last week’s price action. The bears have until the end of this week to pull the S&P 500 down if they want a chance to get negative momentum on the longer-term momentum. International markets for the most part are still negative. US growth is still outpacing US value and US small caps are losing to US large…

Bears Fail to Capitalize – Bulls Take S&P 500 to Top of Resistance Area

March 17th, 2019

The S&P 500 bulls had another win last week. The bears simply could not capitalize on the previous weeks weakness. Now, here we sit at the top end of resistance from late 2018. The S&P 500 clearly stalled again at the resistance area on Wednesday and Thursday, but on Friday the bulls made an attempt to break through and did so even though they could not do it with gusto. The risk is relatively high for the bulls right now because the start of this leg up is a hefty distance to the downside and we are in the top third of the large trading range. This past week, the large cap stocks led the advance while small caps were up, they are structurally weaker right now. The S&P 500 is still considerably stronger than the MSCI All World (ex-USA) index. The international index is starting this week at a major…