Courtesy of Doug Short.
Here’s the latest weekend update from Serge Perreault, a Chartered Accountant and market technician located near Montreal, Canada. Serge has been following the U.S. market in a series of weekly charts. Here is his update on the S&P 500.
The S&P 500 broke a resistance, on strong momentum but on 2% above-average volume only.
The lack of volume coupled with the divergence between the two momentum indicators (ROC still trending down while RSI is trending up) make it hard to believe that the index would have enough power to break the resistance of a sideways trading range dating back to Feb. 13, 2012.
Note: For newcomers to technical analysis, here are brief explanations for the two key indicators that Serge features:
