📈 Room to Run?

The S&P 500 Made All-Time Highs Yesterday.

RSI Conditions

The S&P 500 made a new all-time closing high yesterday. Let’s review market internals to see where we’re at.

One thing I like to look at is the 4 hour chart while overlaying RSI. While we are at highs and the market looks strong, we may need to work off RSI on the 4 hour chart.

We are essentially still overbought. It is difficult to break out over resistance levels to new highs while already overbought.

You can see below that we are already working off the overbought condition on the 2 hour chart, so it may just be a matter of time before we do the same on the 4 hour. It’s not a major concern but something to be aware of.

Market Internals

If you’ve been following me for some time you know that I routinely look at the percent of stocks above moving averages.

See the charts below.

You can see that on these charts for the most part we are at relatively high levels and there’s not a ton of upside room without a pullback.

So this tells me a similar story to what we’re seeing with RSI - we may need some time to base and work off current market conditions before we see our next large move in the market. Keep these indicators in mind as you trade tomorrow.

I review additional market internals in the video below: