Stocks Bull into June
It's a new month, but it's the same old story. Stocks just keep on rolling with their winning ways.
The S&P 500 has been trending higher since mid-March, despite a pandemic, civic unrest, and a looming recession.
The irony is this - If you're paying close attention to the news, you're too scared to buy.
But, if you're following the charts, you're riding this market higher.
RSI is trending higher, but is short of overbought. Any reading above 70 would indicate an overbought market. However, relative strength index is currently clocking in at 64.61
MACD (moving average convergence divergence) is trending higher along with the relative strength index. This indicator is not currently giving a clear signal as far as buy or sell, but it is mainly used in trends.
The 10 day (yellow), 20 day (blue), and 50 day (purple) moving averages are lined up in proper order for a continuation of the trend.
Finally, the bullish trend line (black dotted line) remains intact.
At this rate, markets will be challenging their old highs by the end of summer.