Charting the S&P 500: Defying the Odds
Stocks are pushing through barriers with a great deal of ease, which is not common.
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One thing is for sure, when a bull run confirms there is just no telling when it is going to end. As much as the market has been trying to reset and provide better entry points on a pullback, there is just no letting up. Even with a couple of down sessions this past week the market snapped back hard and rallied to new all-time highs (S&P 500, Nasdaq) on good turnover.
The chart of the S&P is still bullish, no question about it. Candles remain blue, which is bullish on the GoNoGo composite of indicators. We have a strong MACD buy signal in place since the start of April, and notice at the bottom the strengthening money flow. Of course, this indicator moves very slow at first, but momentum can really push the money flow up fast as the big money investors take their positions.
Naturally, the markets are overbought on a price basis. Breadth is good, not great, but we understand the price action matters most for the bulls, until it doesn't.
Does the market need a rest and pullback? Sure it does, but we're not going to try and call that move; it could come at any time as dips are going to be aggressively bought (as the brief ones have been, too). Could we see 7500 on the S&P 500? Certainly in the next few days.
Stay alert!
Related: Is an AI Bubble Bad for Investors?
