Morpheus Trading: Yesterday’s broad market advance put the S&P 500 (INDEXSP:.INX) near last week’s high, and back above the 50-day MA and 20-day EMA, but the bounce was once again on declining volume. Considering how ugly the price and volume action was last week, this week’s rally attempt seems quite weak.
There is always the possibility the S&P 500 could push to new highs, but given how ugly most charts are, we doubt such a move would hold for very long:
As far as resistance in the NASDAQ Composite, the downward sloping 20-day EMA is just above, but the prior swing high around 4,180 will be tough to overcome.
Earlier this week, we listed Sprott Physical Platinum & Palladium ($SPPP) as a potential breakout setup from a tight-ranged consolidation.