Charting the S&P 500: The Party Isn't Over Yet
Conditions could change, but the index remains strong and isn't signaling any weakness whatsoever.
You've reached your free article limit
You've read 0 of 1 free Pro articles.
It has been an impressive run for all markets in 2024. Look around and you’ll see positives everywhere you turn, be it crude oil, gold, Bitcoin, US equities, foreign equities (save for China, which is a hot mess) or the US dollar. The only poor result one could point to is found in bonds, which on the long end of the curve yields are marginally higher since the start of 2024 as the bond market awaits the all-important first rate cut from the Federal Reserve.
The timing of that cut is the issue. Many prognosticators have tried desperately to get it right but have failed miserably, and continue to do so. The data will lead us closer to the answer, and that is what Chairman Powell and his colleagues prefer to do. Meanwhile, the chart of the S&P 500 remains strong and is not signaling any weakness whatsoever.
S&P 500 Index
View Chart » View in New Window »
We have not changed much on this chart lately, but noted last week the double dojis that could have posed some problems. That did not happen; the indices instead decided to reverse course and head upward to make higher highs and higher lows. In the process, the S&P finished at an all-time closing high last Thursday and ended the quarter in grand style.
The indicators are overbought, but that never means we should short or get ready to short. It simply means we need to follow the trends and read the momentum of the market carefully. If that narrow channel breaks and there is a confirmed bar, we’ll know the conditions will have changed.
