The Bottom line: The trend on the S&P 500 will remain bullish until/unless 2612 is broken on a closing basis.
The S&P 500 and NASDAQ Composite look to be trading within Triangle patterns near-term and still difficult to make much of this as bullish or bearish.
The action has been merely “SIDEWAYS” since mid-January.
The Dow Jones Industrials Average is trading higher today, but yet the NASDAQ is lower given Technology weakness. Market breadth meanwhile is registering nearly 2/1 bullish on Advance/Declines so that is a minor positive.
Treasury yields are attempting to break down in recent days, and this could have importance if/when the Dollar begins to weaken a bit more steadily. This could exert some pressure on Financials and on the broader market as a leading indicator, so put this on your radar.
Outside of this, we are starting to see Precious metals strengthen a bit more lately, and Gold is back up to over 1310. Demark exhaustion is still 2-3 days away so this should allow for additional Gold strength near-term before any pullback.
S&P 500 Hourly Chart
The S&P 500 hourly chart above shows this distinct triangle intact for S&P, and support looks to have held yet again on the early morning weakness. Above 2672 would be significant and positive, while prices cannot afford to get under 2622, which in turn would lead to a short-term pullback. For now, breadth is positive and we’re awaiting some evidence of trends giving way.
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Author has positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
