Market breakout with higher lows and higher highs along with an RSI above 50 signaling more upside likely to come. Additionally, both the 10 and 21 MA are above the 50 SMA adding to the bullish posture. Note markets are digesting lower oil prices as a stimulus. Lower oil, higher stock market.
Well, now its unanimous…3 out of 3 have now crossed into bearish zones. Now what? Time to sit back and keep an eye on the market, look to see if $SPX will recapture the 50 SMA and hold above. Otherwise, we will be searching out for support below these levels. I’m looking for a bounce to occur tomorrow, but the close will tell the story.
There doesn’t seem to be a large number of stocks participating in new recent market highs. There may be a little more room left to the upside, but many stocks are exhibiting signs that momentum may slow on the horizon. Note on the stocks at their 50 day highs is not matching up with current overall market highs. Stocks and indices such as the QQQ and SPX are showing negative divergences on their daily charts.