• Chartist Corner: Two Charts That Should Worry The Bulls

    by  • May 15, 2013 11:13 am • Breaking News, Broad Market Analysis, Chartist Corner • 1 Comment

    Although things are going great for the bulls, here are two charts that should at least give some pause.  Now, if you’ve been following me this year, then you know I’ve been bullish, but that doesn’t mean we won’t ever have a pullback.  In fact, after some of the solid gains the past six months, maybe some type of a pullback or consolidation would actually be rather healthy.

    As I noted on CNBC two weeks ago, the SPX has been trading a nice channel since the November lows.  Well, we are currently near the top of this channel and this could mean some type of slowdown is due.  But as long as the SPX stays above that lower trendline (and 40-day MA), I see no reason to abandon the overall bullish view.

    What’s interesting is looking at a weekly chart, we see the SPX is again in a bigger channel and once again near the top trendline.  End of the world?  No.  Cause for concern?  Yes.

    So there you go.  It has been a nice run, but it won’t last forever.  Stay nimble and continue to pick the best set-ups.  I see no reason to rush out and buy a bunch of puts or proclaim this the top.  Still, the two charts above are worth paying very close attention to in the near-term.

     

    About

    Ryan Detrick is the Senior Technical Strategist at Schaeffer's Investment Research in Cincinnati, Ohio. He joined Schaeffer’s in 2003 and is a frequent speaker and writer on stock market and economic issues and is widely sought after by financial media for his expertise and commentary. Mr. Detrick is a common guest on CNBC, Fox Business, and Bloomberg Television and has been quoted in outlets such as The Wall Street Journal, BusinessWeek, USA Today, Reuters, the Associated Press, and others. With a decade of financial industry experience in the investment and financial services area, strengths include short-term trading with an eye toward timely technical- and sentiment-based trading opportunities, and advanced option trading strategies. Mr. Detrick received a BA in finance from Xavier University, an MBA in finance from Miami University, and has earned his Chartered Market Technician (CMT).

    http://schaefferstradingfloor.com/

    One Response to Chartist Corner: Two Charts That Should Worry The Bulls

    1. Roberto
      May 16, 2013 10:18 am at 10:18 am

      Exuberance

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