Charting the S&P 500: New Highs Are Very Close as Bulls Regain Control
The market has seen some very good broadening as the trend remains bullish.
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After a solid week where we finally saw a higher high and higher low on the chart, the bulls are back in charge.
Notice the candle to the right turned blue after a month in teal, which was only cautiously bullish. MACD remains on a buy signal and momentum remains strong. Money flow continues to be bullish as well, so the all of the indicators are supporting this bull market run.
With earnings season here, expectations are very high for strong performance and guidance. The economy seems to be in good shape and inflation may soon be coming down, all good things.
The only concern might be valuation, but coming off a very strong first-quarter earnings season which saw better than 27% gains we could see more upside if estimates are crushed as they were earlier in the year.
Another concern might be complacency, with a very low volatility index (VIX) as investors and traders are not fearing the market ever going down, and money is flowing in. But when one side of the boat is tilted too heavily, we know what happens next.
