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S&P 500 Breaks to New Highs

September 17th, 2017

Click for Detailed Video The S&P 500 has been cruising to new highs with relative ease. Each time the S&P 500 has corrected, it has only consolidated sideways. The pattern has been for it to breakout to new highs, consolidate sideways, then breakout again to new highs. This past week signaled the 5th time the S&P 500 has broken out to new highs from a relatively flat sideways movement since November of 2016. So how long can this continue? Nobody knows for sure, but we do know that each breakout has gotten a little bit weaker. Look at the chart below and notice the labeled boxes. Each area highlighted is the zone in which the S&P 500 consolidated after a breakout. You can see how the boxes have gotten closer over time and the last one even over lapped. This signals weakness in the trend.     Just because there is weakness in…

Bears Hold Bulls Back

September 10th, 2017

Detailed 6 Minute Video The S&P 500 finished down .61% this week. Price finished the prior week at resistance and it looks like it is holding for now. The S&P 500 is so close to making new highs. This is the second time we have been in this range and price has failed. This past week could be the start of the 2nd leg down in our wedge correction scenario. As far as worried about a bear market right now, the S&P 500 & All World (ex-USA) Index still have a pretty substantial way to move before it becomes a major concern. Even the current trading range of the S&P 500 is relatively tight from this last pull back which shows the willingness of the bulls to buy in at lower prices. This is the second attempt at a new high and so we want to see if the bulls can come…

Bulls March into Resistance

September 3rd, 2017

Click for 7 Minute Video of Details The S&P 500 continued the upward movement last week and ended up 1.37%. The week did start off slow as the bears pulled the S&P 500 down on Monday and the beginning of Tuesday, but by Tuesday afternoon the bulls were in full force and continued with buying pressure until the close on Friday. On the S&P 500, this is the first test of the high from the last pull back. So as at ended this past week, we are sitting right at resistance from the last high. This week was also the close of the month. From our indications, there were very few trend sell signals given from the monthly close. This doesn’t mean the markets aren’t topping or we are not at the top of the market, it simply means the bulls are winning right now with regards to the longer-term trend. The…

After Two Down Weeks, Bulls Maintain Composure and Push S&P 500 Higher

August 27th, 2017

Click Here for Detailed Video! The bulls were able to post a winning week with the S&P 500. The index finished up .72% before closing down shop on Friday. They were not able to reverse the entire trading of the prior week, but they did get a start to it. The bear/bull market reading didn’t change much from last week. Price of both the S&P 500 and All World (ex-USA) Index are outpacing treasuries by a long shot. Until they start to underperform treasuries on a 12-month rolling basis, we are not in a ‘risk off’ stance. The S&P 500 is still underperforming the All World Index which is why we are focused on international markets for the most part. Breadth picked up with price this past week and increased much more than price. This mismatch of price and the oscillators created a negative reversal according to the close. A negative reversal…

Bears Continue Pressure

August 20th, 2017

Click to See 7 Minute Detailed Video The S&P 500 finished a volatile week down .65% before the closing bell rang Friday afternoon. It really looked like the bulls had a chance to reverse the price action of the bears from the prior week, but as they drove prices up at the beginning of the week, the bears sold and ended up taking over for the latter part of the week. We are certainly in a sideways to down trend on the daily time-frame. The good news for the bulls is that we are close to a significant support level around 2400 on the S&P 500. It may be a point in which the bears take profits and the bulls start buying in again. If that is the case, it could be the bottom of the trading range and quite possibly a trading range that lasts many weeks. With regards…