Up For Air

Well we've made the move and I would say we are about 75% completed in the revamp of the office and I finally feel like I can come up for a bit of air.  In the meantime I thought I'd give us a bit of a look at "Mr. Market" as represented by the S&P 500 ETF, SPY.  The chart is from Tradingview.com although the annotations are mine. As you can see my thesis of a market consolidating last year's gains continues to hold. So far in 2018 absent the dividends the S&P 500 is only slightly positive.  We've seen a pickup in volatility but stocks seem mired in a range between those two blue trend lines you see on the chart above.  We'll have to watch how the market reacts to the upper band which is also resistance and also how it reacts to that downward sloping trend line shown in green.  It's interesting that where the market might encounter both of these is a point where they will intersect.  There is a higher probability that a break out from both of these points would be considered positive for stocks.

We'll commit to at least one post next week and hopefully two.  Thanks for putting up with me during our move.

*Long ETFs related to the S&P 500 in client and personal accounts.  Short S&P 500 in a personal account as part of a separate individual strategy.  Investments can change at any time without notice.