Dec S&P has clearly been in a rally since forming a double bottom in July and so far it has not done anything to imply the move is coming to a close just yet. That said the move has been fairly one way for several weeks and that has pushed our Trend Intensity measure into an extended area at 41.
While this is not a reason to abandon the move it should just heighten traders' awareness that the picture could change quickly. On longer-term (monthly) charts the channel breakout is still a major theme and points to a solid upside move over the next few weeks.
The upper line of that pattern comes in at 1364 and the contract would have to close a session or two below that level to damage the bigger picture. In terms of sentiment the 20-day put/call ratio continues to sink (currently at .63) but it is surprising that traders are not aggressively jumping on the band wagon and is an indication that the rally has more room to go.
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