Day Hagan Tech Talk: Peak or Peek
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Summary
Despite a headline-driven environment, the fear factor took a breather and the bulls took charge. Now what? Consolidation? Pullback? More upside? With four recent breadth thrusts, I’m happy with any of these. Regardless, with overhead resistance, more work must be done.
Back to the Scene of the Crime
Bullish sentiment is slowly returning—as measured by particular Put-Call ratios—as is a near-term overbought condition. Will the S&P 500 (SPX/5560.83) peak as it approaches gap resistance (5572)? (Red box in Figure 1.) Or is the SPX peeking above resistance (arrows in Figure 1) and on its way to challenging another formidable resistance range of 5700 to 5800+/-? (Figure 2.) We should know the answer by the end of this week.
Figure 1: S&P 500. | SPX has moved above resistance and must contend with gap resistance (red box). Support is depicted in green.
Figure 2: S&P 500 with 50- and 200-day MA plus Relative Strength Index. | Price momentum (top frame) suggests resistance (5613 [falling 50-day MA] and 5700 to 5800+/-) will get worked over.
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Art Huprich, CMT®
Chief Market Technician
Day Hagan Asset Management
—Written 4.28-29.25. Chart source: Stockcharts.com unless otherwise noted.
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