Charting the Markets: It's Hard to Argue With This Strength
New highs are hitting all around hitting at a seasonally strong period for stocks.
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What a week for the markets. Last week, we asked "Are You Ready?" That was the right question to ask as the bulls were furiously adding stocks hand over fist following the election results. It was as if a light switch was flipped and all the buying was shoved right through the door.
As we mentioned too, the election was an event the market was waiting for resolution on, and once that happened buyers stepped in, and volatility sellers got to work driving the VIX down. It was a record-breaking week, with all four big indexes finishing at all-time highs.
So, what's next?
The channel we drew in a few weeks back remains active. The S&P 500 weekly chart is pushing the upper end of the channel, but we still have room to move higher.
The 6000 level was rejected on a close Friday, but there is plenty of momentum and fuel to drive the market past that level. Money flow remains healthy, and the chop index is pushing down, which means the market is trending.
There may be some pullbacks on the way, but the S&P 500 looks to make even higher moves over the next few months.
