Mentorship

Mentorship

S&P and Nasdaq Composite

12 Jul 2016 ‚óŹ 05:51 AM

My target for S&P at 2130-2145 was achieved. But that we saw a all time high reading on this index has everyone back asking the bull market question. I think it is too early to conclude anything. I showed a last week also a chart showing the US VIX. Put it together after Brexit the US market bounced back as sharply. At that time the July rally took the Nasdaq Composite to a new all time record high in July 2015, That high is still the all time high.

The chart of S&P shows weekly momentum with negative divergences and price near the upper Bollinger band. the Intraday high made a new all time record high after Brexit. But with these levels and indicators we need to watch if it is still a negative divergence top or a new move, and it is too early to say that this is a resumption of the bull case.

 snp120716

Not just the S&P but most US indices are probably completing an expanding triangle at the recent highs right now till proven otherwise. This is the Nasdaq composite, a series of 3 waves so far.

nasdaq120716

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