The market made a new high a week ago than pulled back just a bit. So let's take a look at what the charts are telling us to gain some perspective on what the near term holds. Below is a 60 minute chart of the S&P 500 fund (SPY).
From the chart above. The 60 minute is in a neutral pattern neither overbought or oversold, just trending sideways at or above the moving averages.
The daily chart is overbought and can use some consolidation or a pullback to the 20 day exponential moving average prior to moving higher.
The weekly chart above, has just entered into overbought territory. Prior to moving higher, I would expect to see some sideways to a small pullback.
Bottom Line: Charts are showing some overbought signals, so I expect next week we remain in a trading range to work off those conditions prior to resuming the predominant trend, which is higher. Thank you for reading.
