Saturday, May 24, 2014

SPX Daily Chart New All-Time Closing High Above 1900

The SPX prints a new all-time closing high at 1900.53 above 1900 for the first time in history. Price did not print a new all-time intraday high, however. The all-time intraday high is 1902.17 on 5/13/14. The rising wedge (bearish pattern) behavior continues with price printing at the top trend lines; also at the upper standard deviation band. The red lines for the indicators show negative divergence remaining in place but the RSI and stochastics are creating near-term upside momo.

Note the anemic volume this week. The four up days are the lowest volumes of the entire year thus far. The highest volume day of the week was on Tuesday the day the markets sold off. The thin upper trend line shows 1910-1925 in play. The standard deviation band squeeze has now sent price from the lower band at 1860-ish six days ago to 1900 now, a 40-handle bounce but the price action remains hesitant from firmly committing to a further 20-handle or more streak higher. Tuesday and Wednesday trading will be important. If the bears reverse the upside move, it has to occur early next week, otherwise, the trek to 1920 is virtually guaranteed.

If the Ukraine elections occur without any significant problems, stocks will likely head higher on Tuesday with the SPX heading to 1910. The projection is sideways to sideways lower moving forward but the bulls always find a way to maintain market buoyancy using the central banker easy money. The dollar/yen ran from under 101 to 102 over the last day so the weaker yen (BOJ money printing) fuels the stock market higher. The easy money flowed into tech, semiconductors, financials and copper to boost the broad markets and create the SPX all-time closing high. If the dollar/yen moves above 102 heading higher, the market bears do not have a chance. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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