Several weeks ago I wrote that the S&P 500 would struggle to break the band of resistance at 2100 to 2130. Tuesday’s strong blue candle made me hesitate but sellers showed up on Wednesday and restored my faith. Money Flow is declining and reversal below 2040 would confirm another correction. But breakout above the descending trendline on 21-day Twiggs Money Flow would still warn that all bets are off.
A CBOE Volatility Index (VIX) at 15 indicates that (short-term) market risk is low.
We have reduced cash levels in our S&P 500 momentum portfolio as long-term risk measures have improved but there are still only 4 stocks (out of 500) that meet our selection criteria!