It is nice to be able to do more trading now that the move is done. It took way longer than I thought it was going to. The market is entering a historically weak period over the next couple of months. July was down, which is unusual, so it is not surprising that August is showing some strength. The market has a tendency to do what it wants and not always follow the path everyone expects.
The market had a strong finish to July and has been in a consolidation pattern the last few weeks. However, it is drifting higher. The hourly chart does a good job of reflecting this.
The trend is up and that is what should be respected at the moment. However, the 52-week NHNL is showing a bearish divergence. That is something to pay attention to.
The last one failed. Since we are going into a seasonally weak time of year, it would not surprise me if this one was successful and we had a healthy pullback. The counter argument is the market is very top heavy and those stocks (mostly the AI trade) had a correction in June/July and are now recovering their loses. There may not be much reason for the market to follow normal seasonal biases.
