Saturday, May 24, 2014

Market Trend Model

The Market Trend Model continues to show the strength of large cap stocks and the relative underperformance by technology and small cap stocks.

On Friday the S&P 500 closed at a record high on the lowest trading volume day of the year.  This index appears to have formed an ascending base, but new highs on extremely light volume makes this pattern suspect.  Also, the volatility index continues to trend lower and is at levels seen seven years ago.

The Nasdaq and Russell 2000 continue to wallow on the right side of head & shoulders chart patterns.  Lower volume up days and higher volume down days are also the theme with these indices.

It appears to me the market will have to show its intent fairly soon.  I'm watching for a very big volume day for an indication of which way the market wants to trend.

View all of the Market Trend Model price charts at