Charting the S&P: Tread With Caution as Bears Come Out
A marked change in the price action means we'd better watch out.
You're reading 0 of 1 free page.
Register to read more or Unlock Pro — 50% Off Ends Soon
Regardless of the calendar and that we are in a seasonally bullish period, the bears took a big swipe last week. While the markets finished positive on Friday, it was negative all the way around. We saw plenty of volatility, which means the range expansion, and did it ever expand. Thursday's huge intraday reversal was one for the record books, only a handful of times that had occurred.
In the process, it knocked the trend to a cautiously bullish view. The GoNoGo composite of indicators went to teal from blue for the first time since June. The Moving Average Convergence Divergence, in the second pane, has now confirmed a downtrend. And you can see in the second-to-bottom pane that Stochastics (momentum) has rolled over and now the money flow (bottom pane) is turning down.
The bottom of the long trend channel (dashed lines) are still holding support, but barely. We cannot give the markets the benefit of the doubt any longer, though we could see bullish action this week the volume trends will not be bullish. Time to be careful until the end of 2025, play it close to the vest.
