_____________________________
A common theme with these intraday charts of the major indices has been the ebbing and flowing of price. In other words, we have seen plenty of backing and filling, followed by basing out. Despite the multitude of calls I have seen that this market is complacent in its march higher, I am seeing more tempered, cautious optimism in the charts. If anything, it smacks of shockingly rational behavior.
This morning, for example, we opened higher but then quickly filled the gap. Since then, as you can see on the 5-minute chart of the SPY above, we moved higher and have since based out. While a blow-off top in complacency is not necessary to form an inflection point, I would reserve contrarian views for the time when we see this cautious optimism in the charts start to change, and not before then.
Chess, no concern over Transports breaking down?
Expect 50 day ma test now on IYT–obviously oil looks like a concern. Not a huge issue…yet