The SP500 volume on the upside today was pitiful. But what can one really expect on a Monday, the last week of July heading into the super sleeper month of August ?
The SP500 Index did close at a new high today despite the super low volume. In a previous post I was talking about how the SP500 index may be contained within a broadening wedge formation. As of today’s price action we have not seen price break out up and above this pattern, but that possibility is starting to look more and more likely.
The market can continue higher and higher on low volume for the rest of August and into September. It might not be the most bullish environment for a market rally, but it can still happen.
I don’t want to come up with too many different scenarios, but I am starting to think that this market is going to power higher through August and into September and then maybe get some sort of correction going in October and then another rally into the end of the year. It seems like a reasonable possibility.
But first things first. The SP500 needs to break up and through this broadening wedge type formation and let us know it wants to keep the uptrend going.
When I look inside the market, I am seeing bullish setups all over the place. So the inside of the market is saying it wants to move up in August and probably September as well.
I will leave it at that for now simply because there is not too much else to say about today’s action other than the fact that it made a minor new high on low volume. Not too much has changed from my previous observations I made on the SP500 index.