Charting the S&P 500: Still Bullish… But Some Worry
Stocks were mostly down this past week and felt the heat from semiconductor names.
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Hard to believe semiconductor stocks have so much influence on the markets these days but it is very true. This past week saw a dismantling of these stocks, which continued from the prior week as names such as Micron (MU), Broadcom (AVGO) and even Nvidia (NVDA) suffered through some serious bouts of selling. Eventually it will let up but for now this group is under distribution (institutional selling) and that continues until further notice.
If we can take one positive from the recent market action it would be the broadness, which is simply as many issues going up as going down, for the most part. We can say the markets are treading water, though, and that is often a sign that a big move is about to commence, we just don’t know in which direction. If we give the markets the benefit of the doubt because it is still bullish in price then we can assume the next move is higher, but that is yet to be determined.
The indicators got a bit weaker this past week as money flow went down and the MACD is close to a bearish crossover move, which could be monumental.
Price action is still bullish with blue candles, so that is encouraging to the trend continuing.
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At the time of publication, TheStreet Pro Portfolio was long MU, AVGO and NVDA.
