The monthly, weekly, and daily charts of the major indices are bullish but, absent the usual media cheerleaders, there seems a noticeable lack of enthusiasm at this point in the rally. It’s not fear, the low reading on the VIX can attest to that, just an absence of the usual over-reaction normally seen around new high levels. One reason may be because the last time we made new highs they failed, and one month later the S&P 500 was back below its 50 day moving average and down 3.5% from its peak.
The index pulled back from new intraday highs on Friday, to close in a zone of resistance delineated by the March high and the symmetrical triangle downtrend line. The S&P 500 SPDR (SPY) made a new all-time closing high but formed a small doji candle in the process. This candle is defined by its narrow opening and closing range. It represents indecision and is often seen at market tops, but can also be a continuation candle. A similar doji formed in February near the top end of that breakout to new highs.
Bullish multiple timeframe trends are more technically significant that individual candle formations, but it will be interesting to see how the market proceeds from this point.