Charting the S&P 500: Amazing Turnaround Catches Bears Napping
Both bulls and bears need to be on their toes for quick moves right now..
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There was lots of excitement last week with such large moves. We recently spoke of the potential for high volatility in markets. The VIX did make a run to the 20's on Thursday but backed off those high levels on Friday.
There was no dispute as to who was in charge Friday, with a massive run toward record levels. The S&P 500 is just about 1% away but the Dow Jones Industrials did close the week at a new high, also a milestone level at 50,000. That was some week by the Industrials but also the small-cap Russell 2000, which broke a small downtrend to the upside on very strong volume at week's end.
The S&P 500 is still trading in a range and is trying to break out to the upside. Every time it seems there is a breakout attempt the resistance comes into play, and that is currently the old highs around 7000.
Money flows are not improving, but the trend for the S&P 500 continues to be bullish (blue and teal candles). Volume trends are turning bullish but are not quite there yet.
Notice the weakness of the trend on the weekly chart, which shows very little momentum. At some point that will change.
