The market ended the week just above current resistance. If there is going to be any follow through, we should see it push back to all time highs. The rally last week was a bit aggressive. A pull back of some kind would not be surprising. The resumption of an uptrend would be more convincing if the market retested support around 6550 first. Then moved higher. One can can make the argument the retest already happened on Tuesday.
Looking at volume levels, I don’t think other traders believe we are going to move much higher. The volume for last weeks’ rally was pretty weak. That does not show much conviction. However, the price is moving higher and should be respected…for now.
Breadth indicators are interesting. The 52-Week NHNL is showing a possible bearish divergence
The others are following their normal ebbs and flows of an uptrend. Something to keep on eye on is all of them are in an area where a pullback typically occurs. Not a guarantee, but typically.
Let’s see what the week brings!
