Charting the Markets: S&P 500 Hit All-Time High But There's Trouble Ahead
Bulls took advantage of some weakness in volatility, but money flow is going to be a problem ahead.
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There was a lot of interesting action this past week, a short one with the markets closed on Thursday for the Christmas holiday.
With weakness in volatility (as expected) the bulls took advantage early in the week and came after stocks like a hungry lion going after some raw meat.
The range the past few weeks has been very tight. Finally, this past week, there was a higher high and higher low. That is technically a bullish trend, though we would like to see price break out over the marked resistance. That line (in the top chart) has been in place for several weeks and has stymied the indices.
Yet, with new all-time highs printed and a closing high this past week, you cannot argue this to be anything but bullish.
The indicators, however, are telling a different story, with a bearish signal still on MACD and a decelerating trend as signaled by the ADX. Money flow is weak too, and eventually is going to be a problem (but not right now, seasonal trends are bullish).
