Reading this blog is kinda’ like ground hog’s day, then, isn’t it?
Daily chart not showing much change from yesterday, so just a 60min SPY chart this evening.
Note on the chart how SPY/$SPX lost the rising trend line Monday, stayed below it on Tuesday, and then recaptured it on Wednesday. Due to today’s sideways action, SPY has once again lost the first redrawn trend line, so I’ve added another trend line below it. Problem with the second trend line is that for SPY to get there tomorrow it would also have a 13/34 Bearish cross in the process, which would be the second ‘sell’ signal per this method this week. Not saying it’s going to happen but should it then, well, there you are.
Chart courtesy of FreeStockCharts.com
Zweig Breadth Thrust, $BPSPX, etc, still showing overbought with $NYSI just a hare’s breadth away from hitting oversold benchmark, but $SPX and other major indexes are ignoring all of this for now. They can ignore this for much longer than most would imagine, including me.
I continue to watch for a blow off type event which should come as a last gasp higher with breadth indicators stretched to the max. Maybe this won’t happen. Maybe the markets will just climb this wall of worry forever and ever. Naw!