….It does not mean it will pullback yet. The market is up 12 out of the last 13 sessions. That is not common at all.
The S&P 500 is now outside its +3 ATR channel. We are very due for at least a temporary pullback. It would make sense for the market to test the 7100 level before it moved upward again. Not sure that will happen in this case-given the aggressive price action. Interestingly, there has not been much follow through with volume. It still feels a bit like a trap.
Capitalized NH exceeded $51 trillion. That is the first time I have seen that happen. The mood is certainly bullish!
One thing that is interesting is the fed as been aggressively adding liquidity the last couple months. That is probably helping some of the inflows in the the market
Source: https://www.gurufocus.com/market/fed-net-liquidity-sp500
The other thing that is interesting is the Dow has NOT made a new high yet and is sitting at resistance. The only thing I take from that is even though the rally is generally broad, it is mostly driven by tech stocks! I am seeing the same pattern in my own trading.
This is normally where the market takes a little bit of a breather. We will see if that happens. The daily trend is certainly up. The weekly trend is neutral. The market is now beating me a little for the year. That is more of a function of being too busy to fully trade. Getting ready to move has taken up a lot of time! I am generally happy with how I am doing given the time constraints. I think I have found a good balance with trading hourly charts instead of trying to day trade or swing trade daily charts. The system I am using to decide which direction to trade has also something that seems to be working well! Constant tweaks and improvements is the name of the game!
