S&P 500 Near All-time High, But Appears To Be Nearing Peak (China? Fed Bubble Team? Hindenburg Omen? Bollinger Bands?)

The S&P 500 Index’s second fresh high this week saw the equity benchmark close just shy of 3,047 on Wednesday and continue its upward trajectory toward an overbought level.

Its GTI Global Strength Indicator — a smoothing oscillator showing the strength of a price — reached 66.5 intraday, the highest since mid-July. Earnings and Friday’s U.S. payrolls report may help to determine whether the technical gauge triggers its first sell signal since that month or remains in a neutral zone between 30 and 70.

spxhigh

Technical indicators are adored by many (just not academics). BUT if you believe in Bollinger Bands … the S&P 500 index (white line) is near the upper limit of its upper band (pink).

spxboll

Do you believe in the Ichimoki Cloud? Currently, the NYA (New York Stock Exchange) is trading ABOVE the cloud.

ichim

How about the Hindenburg Omen? It was correct in signaling a market downturn way back in 2007, but has not really been a good forecast of market corrections since 2007.

hindomenfed

Elliott Wave? The NYA seems to be at the top of wave.

elliottwave

Of course, The Federal Reserve impacts markets. As of today, the Fed Funds Futures market is predicting no rate cuts at the December FOMC meeting and no rate cut until the March 2020 meeting.

wirppost

The then there is the China trade deal where China is indicating “no deal” unless the US rolls back more tariffs on Chinese imports.

dowdol

Do we settle for Pabst Blue Ribbon in the China trade talks or go for Heineken?

movies-dean-stockwell-blue-velvet

In bubbles, I dream.

 

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