18 Apr 2021, 19:23
As expected, last week was a good week for the bulls. April has lived up to its traditional expectations of being a bullish month. However, volumes have again been poor. The S&P 500 Index continues to go up without any strong volume momentum. Look at the Chart, you can see the red volume bars been larger in size than the tiny green volume bars. This shows that on down days, we are seeing strong bearish activities. However, we should follow the trend till it ends, so we are still currently bullish bias for the stock market in the near term.
The S&P 500 Index is at the resistance of the green channel line at the end of this week. I am pretty confused for next week though. Based on technical charting, I would call for a drop this coming week, however, we are still in the middle of April, which is traditionally a strong bullish period. This week could go either way. But, if it is going down, then I expect the index to be heading for the black channel support line.