The S&P500 made new highs, as did the Russell. The Nasdaq made new local highs, but not all-time highs – that’s the one lagging.
Within the S&P, it appears the energy sector this time pushed up so the XLE component contributed while the XLF only went slightly up. Financials were previously leading the S&P.
But whatever sector is pushing up — doesn’t matter, the S&P is slowly breaking through prior resistance. In a way, breaking through this way is more sustainable than a big spike up – which would likely just sell back down. But building a base above the 2165 ES support, is indicative of a potential slow grind up. The market can change on a dime, but so far, that’s how it played out.
I am amazed by the Russell Chart – this morning’s pullback seemed like it would open the door to a bigger pullback — some kind of wave 2, but it didn’t happen. Instead, the slow grind up happened. This market is markedly different from what we saw a few months ago.
What finally happened is what I was expecting to happen back in September. So this consolidation has definitely taken longer than I expected, but breaking towards new highs is something I’ve been expecting.
As we go into the Thanksgiving weekend, I can’t imagine volatility or trading volume to increase, so I would imagine things should just kind of hover in this region, and maybe pullback to consolidate if there is some small spike upwards.
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