Friday, June 6, 2014

SPX Daily Chart New All-Time Record Highs

The bulls appear unstoppable. The SPX prints a new all-time intraday high at 1941.74 and new all-time closing high at 1940.46. The Dow print new all-time highs as well and the trannies print a new all-time intraday high. Interestingly, the ECB announcement did not create much movement in Typically, for example, on days the Fed announced happy stimulus measures, the SPX popped about 25 to 30 handles on average. So a 13 handle gain is roughly one-half of prior joy. Perhaps another 13 points of upside are added today, or, there is simply not much bang for the buck. The euro is actually higher than before the ECB announcement; moving opposite of the desired effect.

The tight bands squeeze out the upside move. Price thrusts higher to tag the upper band again so the move back to the middle band, now at 1900.36 and rising, is on the table. A back kiss of the 20-day MA, same number, is also needed. So perhaps price will relax back down to 1900-1910 next week to take a breather. After any pull back the near-term RSI, MACD and money flow all show long and strong behavior wanting another price high before they likely set up with negative divergence like the stochastics and histogram already are. RSI and stochastics are now overbot. Negative divergence remains  universal in the multi-month time frame. Pay attention to the past indicator levels to see if the neggie d remains in place which will continue to forecast sideways to sideways lower markets ahead despite the near-term joy.

Volume yesterday was  bit higher but remains below the selling levels prior to the breakout. The upside orgy is creating gaps that will need filled over time. Projection is for a pull back in the near-term but the indicators want to see these price levels again next week, then the chart should set up with firm negative divergence across the board for a more sustainable downward move. 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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