This was day 3 above the upper channel trend line and down trend line from the spring. The very light volume continues. I would say we have reached an equilibrium between buyers and sellers.
Check out the 60 minute SPY chart.
Price is consolidating into a triangle on this time frame. Since we are nearing the apex of the trend lines I would think a break out will be coming soon. We are still very over bought short term. Will the bulls be willing to push price higher from here? They have not shown any desire to do so yet. On the flip side, the bears have not shown any will to push prices down either. It might take a news event to push people into acting.
The number of new highs was 148. That was a little better then yesterday, but well below the 250+ we were seeing. I guess yesterday was not an anomaly. That indicates the bulls are letting off the accelerator some here. We will have to see if they put on the breaks.
Check out the transports.
They are clearly lagging behind still. It would be unusual for a break out by SPX and the DOW on the upside to stick without the help of the transports.
Check out the chart practice page if interested. http://traderbob58-chart-practice.blogspot.com/
Bob
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