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.