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Chart courtesy of StockCharts.com
- The current chart pattern has price in the handle of a very short term cup with handle.
- Price is currently under the 10 day EMA and the 50 day SMA.
- The past three price peaks have been on lower highs, but the chart did not make lower lows.
- The down days on Thursday and Friday were on higher volume than the early week up days. The volume is concerning for bulls.
- VIX at 16.88 is still very quiet so far. Ending the week about where it started while volatility stayed in a tight range.
- The RSI is perfectly neutral at 50.00. A break up or down in the RSI Monday at the close may give a clue for the next swing in direction.
- The MACD still has a bullish crossover.
- The average trading range has been declining, showing that a short term bottom may be in. (ATR).
- Curiously Consumer Staples $XLP when into oversold Friday at the 33 RSI. This could be bullish as $XLP usually outperforms stock market downtrends.
- Overall the market and sectors are giving signals for a currently range bound market. Buy weakness and sell into rallies is the current edge in this market environment with no long term trend either way currently.