The equity markets are possessed for the last month running vertically higher at a pace of about 30 SPX handles per week, about 6 handles per day, on average. The shorts have given up and the trades are on the bull side, taking profits selling to other bulls, who then rotate and take profits selling to other bulls reentering long. One big upside euphoric run higher. Note how price has jumped both the brown and blue upper trend lines. This price move is obviously not due to the weak economic data and top line revenue numbers weakening but rather the Fed and BOJ money-printing. The new asset bubbles in dividend stocks and high-yield instruments expand higher.
The red lines show the longer term negative divergence remaining in tact but the momentum of the last four weeks causes the RSI and MACD line to want to see another price high on the weekly basis before the roll over occurs. Projection is sideways to sideways down moving forward. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.