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Charting the Markets: Volatility Controls the Action for Now

The VIX remains elevated into an uncertain future.
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You have to give the stock market credit. It seems that every time there is a chance for the market to enter a downtrend the dip buyers come in and pick up the pieces.  That is truly a sign of strength, but for how much longer? 

Frankly, it is foolish to try and predict the precise timing in markets. Remember, each trading day is a random event influenced by news of the day or other market movements around the world. Those parameters change every day, but if you take a long-term view, you should feel confident the market rises over time.

However, we are blurred when it comes to timeframes. We examine a weekly chart every Monday to see if the price, volume and other indicators change from week to week. This timeframe allows us to filter out noise and view much smoother chart that invariably tells us the trend (direction).  

$SPX-26_Oct_2024_09_32

The current chart of the S&P 500 remains bullish. Nothing really has changed over the last couple of weeks, the index is pushing towards an all-time high and a "magic marker" of 6000. Once that pinnacle is achieved, look for a short break with talk about "how far we have come," and then it is back to trading.

Stochastics (momentum) is bullish here, money flow remains robust and the candles are still blue. The march upward continues.

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