Charts Courtesy of StockCharts.com
- Price closed below the $SPY 200 day and 250 day simple moving averages last week failing to break to a new bull market trend to the upside so far.
- $SPY remains above the 10 day, 50 day, 100 day moving averages after the recent up swing from the December 24th lows.
- The $SPX chart (pictured below) found resistance at the 200 day SMA last week.
- $SPY found resistance at the overbought 69+ RSI last week and ended at 61.30 not able to grind higher into overbought conditions.
- The trading range continues to compress to a 3.60 ATR.
- Volatility continues to decline to a $VIX at 15.72 and under the 200 day SMA for the first time since October 5th, 2018.
- The search for yield has driven capital into the Real Estate $XLRE and Utilities $XLU sector ETFs as bond prices increase the bond yields decrease. $TLT $HYG $JNK
- The strong U.S. dollar up trend $UUP has driven down the value of oil $USO and the energy sector $XLE ETF.
- The stock market needs time to work through overbought conditions before the potential of a new uptrend begins
- The odds shift here to a sideways rangebound market next week waiting for the outcomes of the China trade deal and U.S. government shutdown before a new trade becomes established.
