📈 Extended or Room to Run?

Let's take a look at where we are in the market right now.

State of the Market

The S&P 500 clearly broke out today and we closed at a new all-time high.

Let’s take a look at the market to see if we are starting to get extended or if we have room to move higher.

We haven’t reviewed market internals in some time so let’s see what’s going on under the hood of the market.

Market Internals

Here is where we stand in the market.

Remember that this is what the below charts refer to:

• S5FD: % of stocks above the 5-day moving average

• S5TW: % of stocks above the 20-day moving average

• S5FI: % of stocks above the 50-day moving average

• S5TH: % of stocks above the 200-day moving average

You can see that while we aren’t quite at resistance yet, on most charts we are starting to get pretty close to topping out.

The only chart that looks like it still has a lot of room is the % of stocks above the 20-day moving average (S5TW).

My advice for you is to keep an eye on these charts and my support/resistance lines. Your goal should be to start trimming as we approach resistance. These are levels that constantly give us signals when we are reaching short-term tops.

For more analysis on what this means and where I think the market is going, watch this: