Charting the S&P 500: The Train Keeps Rolling, But Some Warning Signs Appear
Here's the good news for bulls — and where we might see a bit of worry.
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There's no stopping this bull market, it seems, not even a government shutdown. Even as that deadline approached and was passed, the markets shook off the news and powered forward this past week.
Notice in the top pane of the chart below the very strong candle on the week, with higher highs and higher lows. One might see the week did not finish on the highs, but suffice it to say hitting an all-time high is certainly bullish. In fact, there is now a streak of five weeks in a row of new highs. Good, strong volume as well. Amazing.
You might recall our concern last week of the doji printed. This represented a candle of indecision, as buyers weren't there to take the market up and sellers were mostly absent. That often gives way to a trend reversal (not always), and this past week proved that not to be the case. That's good news for the bulls.
Where we might see a bit of worry here is in money flows, which turned down (bottom pane) and the stochastics (momentum), which is starting to slow down. Of course, these are both supporting/secondary indicators that will only aid us in the decision-making process.
We won't rely on these solely but recognize they could be early in calling a reversal.
Still, the bull market roars on.
