The $SPX has had a nice ladder effect going on recently. Much like the origins of technical analysis found in the early days, the market tends to move forward in ranges. These areas have been quite obvious recently. The range been support levels appears to be about 75 points on the $SPX.
Here is a copy of the chart I showed on The Commodities Countdown Webinar 2017-02-16.
While all the world is focused on the tremendous bull run, there is a pick up in the defensive sector charts and they have started to join the rally. While this is not bearish at all, it gives us a reason to watch to see if these defensive sectors start to outperform other parts of the market. As long as the defensive sectors are underperforming the market, the growth sectors will continue.
I talked about the leadership stocks NVDA, MU, and TECK on the Commodities Countdown Webinar 2017-02-16. These leadership stocks are starting to change their momentum on the MACD. I reviewed this on the webinar.
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Greg Schnell, CMT, MFTA.