MBO Issue 41 (May 2015) Special Update
By Lawrence
Special update on S&P 500.
Custom market breadth in US stock markets has been compressed to the point that it is about to make a move. That points to major swing in S&P 500, Nasdaq 100 and Dow Jones Industrial Average.
(Premium member only content below)
The rest of the article is available to our premium members only.
Login or upgrade your membership to view this article now.
Comments
Three pushes up: the trendline connecting SPX highs from 3/23 and 4/27 met today. If one MUST sell in May and go away, this might be not so bad a place to do so.
When SPX 2072 served as support, the target was 2124, which we reached today (for the first time in May).
But this is a pre-holiday week. I have doubts that volume will be unlocked. Friday will be almost a holiday in itself.
The market has not exactly been on a tear this year, yet there has been little fear either.
The bull’s case looks lackluster, and the bearish case needs more to convince me.
The upper boundary based on STOPD expansion is now reached. The breadth is weak. So a pullback of 4 to 5 percent is within reason and not going to damage the longer term (weekly) support.
Just a sideway mkt. =)