Mid-week technical update: I wrote on the weekend that I expect that the stock market would continue to rise on an intermediate term basis, but some short-term weakness was likely (see A repeat of the failed Oct/Nov rally of 2015?). What I did not expect was to see a short-term buy signal after the brief weakness that we saw today (Wednesday).
In retrospect, it was easy to see that a pullback was coming. This hourly chart of the SPX shows negative divergences on RSI-5 and RSI-14, which set up the conditions for the fall in prices.
The full post is available at our new site here.
Union OKs GM Canada Contract, Fiat Chrysler Next Up
28 minutes ago