Weekend Update- SPX, MID, SML, & DIA
S&P 500 chart (SPX) - Daily chart
Nothing has really changed. Obviously, the SPX is in a pullback to break out line of the ascending triangle pattern. The SPX remains in a larger reverse symmetrical triangle. Within that larger RST pattern is a smaller ascending triangle pattern. Bulls live above 1246 and bears live below that. The SPX remains in a bullish trend reversal. Today the SPX is up 0.10% at 1302.95 The SPX Target still remains higher at 1304 to 1334. Indicators are in thrust up mode.
S&P 500 chart (SPX) - Monthly chart
The monthly chart of the SPX illustrates that has been trading in a nice uptrend channel and moving up slowly for the past 4 months. It has been trading at the bottom of the channel. If the SPX takes out 1315.90 that will ensure a move to 1334 area. Once 1334 is hit the SPX will most likely get a pull back to the 1304 area. Furthermore, you can see that the highest volume was in January. Indicators and oscillators are bullish.
S&P 400 Mid Cap Index (MID)- Weekly chart
As I have reiterated before, the mid caps and small caps continue to out perform the market. The weekly chart of the Mid Caps shows that it has been going up steadily and staying in its uptrend channel as well as forming a slim jim since the beginning of the year. Indicators are in thrust up mode with low volume selling on pullbacks. I am still waiting for the MID to hit the upper end of the channel at some point this year.
The S&P 600 Small Cap Index (SML)- Daily Chart
The daily chart remains in its reverse symmetrical triangle (RST). As always, the general rule of thumb is, that higher highs are bullish even though this pattern itself is treacherous. The RSI on the daily chart is heading higher, the stochastics are bull flagging, and the williams% indicator is bullish and trending. It remains to be seen if this pattern will over shoot the upper trend line and turn into a continuation RST. Do not let this pattern scare you out of the market and prevent you from trading.
Diamonds (DIA)- Daily Chart
The daily chart is very similar to the DOW. As you can see, the DIA broke out of a diamond pattern and then formed a month long flag and then continued on to make new 52 week highs. Right now the DIA is consolidating in a wave 3 to 4 pullback. Indicators and oscillators are bullish. I believe the DIA is waiting on the FED for direction.
