Chart Talk {01.11.17}

Above is the current chart of the S&P 500 ETF, SPY.  The chart is from Tradingview.com and you can double-click on it to make it larger if you would like a better view.  There are a couple of things to note here.  First is that while there has been great fanfare concerning stocks since the election, the S&P 500 now has basically gone nowhere for almost a month.  It last made a new high on December 13, 2016 and has basically been consolidating in a narrow range since then.  The other thing to note is that we are overbought.  I would add, however, that the overbought condition is slowly being worked off by this sideways consolidation.

What remains to be seen is whether what we see in the chart above represents some sort of topping pattern to the major indices or is simply a pause from which we go forward to new highs.  Only time and more economic data is going to give us the answer to that question.

*Long ETFs related to SPY in client and personal accounts although positions can change at any time without notice or dissemination on any other form of electronic media.