Charting the S&P 500: Hard to Argue With Bullish Price Action
Stocks are setting records in the Industrials as the strength broadens out.
You've reached your free article limit
You've read 0 of 1 free Pro articles.
It was another stunning week for the bulls when many expected to see a drop off in volume and price action. But the dip buyers were active, especially after a move lower last Monday and Tuesday that threatened to de-rail the uptrend.
One thing we have found to be relatively consistent is the dips are being bought aggressively and without much fear. Volatility remains muted, something we talked about recently with the three-day holiday upon us. We usually see volatility get sold into the holiday then “payback” the following session. We’ll see if that occurs.
The technicals continue to improve. Moving average convergence divergence (MACD) is still on a buy signal and money flow is starting to rise up again. The Bollinger bands are flaring open on the upside, bringing the price along with it. Any way you slice it, that is a bullish condition.
Stochastics remain strong as momentum is pushing higher. The longer it continues, the harder it becomes to dismantle this rally.
The last trading week of the month is here and while inflation remains a problem it has not had much of a negative on the markets just yet.
