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Weekly Market View

Weekly Market View

by | May 14, 2021 | Weekly Market View

It was a very quiet week for the S&P 500 as we closed the month above the 8-EMA and sitting on April VPOC. We remain overstretched and near resistance of a multi-month channel higher while momentum has all but slowed to a crawl. MACD and RSI continue to show a slight negative divergence lately with the indices making new highs but both indicators paring back since 4/16. Both have room to the downside still. The recent lows near 4,115 remain key with a move below, aligning with April VWAP, and below a low-volume gap to 3973.25 from the 4/1 breakout to fill. That would also align with a re-test of the 55-EMA, VWAP from the March lows and the top-end of March value. The upside target remains around 4265 from this recent multi-month consolidation.