The Last Time We Made New Highs It Was a Bull Trap

By | April 24, 2015

The S&P 500 index made a new intraday high yesterday but pulled back to close in the zone between the channel top and symmetrical triangle resistance. The siren song of new highs is compelling and is reflected in the positive price and money flow momentum, and volume that exceeded the 50 day moving average of volume by about 9%. There will be continued attempts, and likely several closes that make new highs, but be cautious, back in February a break to new highs turned out to be what many called a “bull trap.” I’m not saying that will be the case this time if, in fact, resistance is definitively taken out, just block out the “song” associated with the hype, and maintain your trading discipline.

4424.SPXchart

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