Tag: XLU

S&P in Bullish Consolidation Prior to New Upswing

recent trading actions leaving the S&P in what looks to us like an orderly high level consolidation of the February rally. The index is holding firmly above 2750, a level it has not breached since market broke down in late 2018. This is a positive development, increased the probability that the S&P will break out to new highs as soon as the market shakes off excessive bullishness

S&P Shifted to Overbought Consolidation Mode

an overbought pullback consolidation interrupted the early February rally in the S&P. Although seemingly vulnerable to further short-term weakness, the overall technical backdrop remains positive so sell-off could be shallow because the sideline money will try to fight its way back into the market

S&P’s 2700 is the Line in the Sand

our near-term work on momentum and price structure suggested that market is in a process of establishing a near-term support plateau. S&P’s 2700 is the line in the sand. All bets are off should the bulls fail to secure this support

S&P Constrained by Short-term Sideways Trend

trading behavior in the S&P remains constrained by a short-term sideways pattern and shown little evidence of a sustainable change in trend. Momentum has been strengthened but does not appear strong enough to generate widespread breakouts. 2700 is the line in the sand. There is a no reason to turn particularly bullish until this area is eclipsed

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