From Corey Rosenbloom: It’s a non-stop bull market that’s going to go higher toward infinity! Not really, but it sure feels that way.
Let’s take a look at the breakout and what Market Internals say on the new highs:
If you’re new to the trading world, you may either be puzzled by this endless bull market (“when will it end?!”) or overjoyed that you continue to make money easily and efficiently via buying every single dip this market gives us (“it’ll go up forever!”).
Still we’re trading the same market that does have a strong resiliency and persistent bullish strength.
While Market Internals where diverging on the recent rally up, the buyers ignored this signal and boosted the market higher this morning with a gap-up and violent short-squeeze event against the bears.
Look closely at Breadth this morning to see price rising but Breadth declined on each up-bar.
VOLD – Volume Differential of Breadth – has been weak and flat since May 19th.
On the one hand we have and endless short-term bullish rally and on the other we have market internals painting a cautious picture.
With dispute between price and internals, monitor your open positions closely and follow price until it reverses.
Price can’t go up forever… can it?
The SPDR S&P 500 ETF Trust (NYSE:SPY) was trading at $241.77 per share on Thursday afternoon, up $1.16 (+0.48%). Year-to-date, SPY has gained 8.16%, versus a % rise in the benchmark S&P 500 index during the same period.
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This article is brought to you courtesy of AfraidToTrade.com.