Entries by David Littlejohn

Still Climbing?

Markets have reached an interesting point. The underlying fundamental data, because of the seemingly permanent low interest rates, still suggests stocks are cheap relative to bonds. But the technical data shows stocks in a more tenuous position, looking over-bought while simultaneously showing signs of declining volatility. The big question mark seems to be inflation. Is […]

Looks Like Momentum Could Shift

Despite eking out new all-time highs for the major indexes last week, it looks like momentum may be starting to wane. The SPX managed new highs last Thursday. This may signal further upside. A look at the daily charts isn’t where the problem shows up. It’s in the weekly chart, where the trading range was […]

Climbing the Wall of Worry

While many continue to fear this market, it continues to climb the wall of worry. The pattern shows a likely pull-back from over-bought conditions. But it also looks like a likely recovery to challenge new all-time highs yet again (for the SPX). The concerns start in August, where we’ll have to contend with the end […]

50-day in Play

Futures markets indicate a continuation of Friday’s sell-off. Last week the S&P 500 managed to close lower than the prior week. It appears a bit of a trader’s pull-back may be in order. Technical indicators suggest the 50-day moving average will likely be tested early this week. That would be around the 4239, or a […]

Q3 Earnings Season Begins

Now that Q2 books are… um… in the books, investors and traders will get a look at whether or not the rumors matched reality. Many have speculated that earnings will be strong – especially when compared with comps from a year ago. Of course, the other key component to pay attention to is guidance. Investors […]

Q3

2021 passed the half-way point last week and the SPX managed to finish the week at an all-time high. This sets up a push/pull situation for this week’s holiday-shortened 4-day trading week. Last week the SPX broke out of its trading range and shot higher. In fact, it’s high enough now that it’s looking pretty […]

End of Q2

Last week provided a technical surprise as the SPX reversed course and broke out to all-time highs. This breakout should negate the sideways pattern that had presented the prior week. The next wave higher appears to be a move toward 4307/4350. We’re at the end of the quarter, so some volatility is not unexpected. We’re […]

Sideway Pattern Emerging

Based on last week’s move it looks like a sideways pattern is likely to emerge. The SPX fell about two percent for the week, dipping below the 50-day moving average. The area of support for the index now sits at 4135. That’s about 3/4 of a percent cushion for the index. But a close below […]

Possible Trader’s Dip This Week

Last week the SPX broke a nearly 5-week streak by finally closing at new all-time highs. The achievement was not exactly a powerful trend higher though. It was a grind. And now market signals are suggesting a small pull-back may be in the cards. The issue is not that the markets made a new all-time […]