Special Risk Capital Management LLC

Trump Rally May Be Slowing November 19, 2016

Nov. 18, 2016 – The “Trump Rally” continues, though it may be slowing down to digest this bounce back to the previous market highs of late September.  Note on the chart below we’re at the 5342 level of the previous (swing) high.  Market Sentiment and Volume Flow are positive but Money Flow and Volume are slowing.

I’ve moved the UTAD (Up Thrust After Distribution) tag over to the current high.  This assumes a Distribution structure which is worse case right now, but more likely it is a Re-Accumulation formation.  The next swing will confirm the structure.  A swing much below 5170 (blue line) would start to concern me and below 5180 could indicate Distribution in the market.  If this market is to go higher, a trading range between 5342 and 5170 could be healthy for awhile.

The pie chart below shows the sectors that are leading the market higher (in the S&P 1500 index). click to enlarge

The chart below shows the relative breath of buying and selling (fairly even), which is a heathy sign.

That’s it for now.  The trend continues up, but this market needs to catch its breath after an aggressive move higher.  We’ll watch for signs of weakness as the market slows.  Have a good week.     …………  Tom  …………..

Price chart by MetaStock; pie charts by http://www.HighGrowthStock.com. Used with permission.