The Stock Market remains in a confirmed short term uptrend. Breadth and momentum are ok, but
volume has turned light again. The SPX is at enough of a premium to the 25 day m/a that you
should not be surprised if the market is clipped a little around the edges by the real short termers.
There is a mild / moderate but by no means serious overbought to contend with now.
The next step for the advance is to get through the 1400 - 1430 area on the SPX. Resistance over
the next couple of weeks could be a very important issue since it would raise the possibility of
a bearish secondary top in the wake of the original cyclical top of SPX 1419 set on 4/2/12.
However, since resistance at or mildly above 1400 would be a more or less natural development,
long side players may have to sweat it out for the short run, keeping an eye on breadth which
has been a price level leader in the current rally.
SPX Daily Chart
- Peter Richardson
- Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!