Special Risk Capital Management LLC

Continuation April 14, 2019

April 13, 2019 – Not much to say this week as this market continues to grind higher.  All indicators remain positive, though Volume Flow is weakening somewhat.  We can see a slowing of trading volume in the lower volume bars as well.

Lower overall volume does not necessarily means lower prices, but IF “everyone is in” this market that is going to buy, the next direction is not up, but rather down.  Let’s keep an eye on volume when we get a down bar.  A wide spread bar on heavy volume would indicate strong selling.  But until then I show resistance at 8107 (previous market top) and support of prices at 7777 (last significant weekly bar).

Sector strength remains very similar to previous weeks.  Semiconductors, Consumer Services and Technology issues are ahead of other sector stocks in the US.  I note that China has weakened over the past week and Banks & Financials have move up.  (likely driven by JP Morgan’s positive earnings report)

Now we are headed into earnings season and any nasty surprises could upset the “apple cart”.. I sense that many traders are nervous as we approach the previous market high.  A slight pull back would be typical.

That’s if for now; a slowing of the upward momentum but the trend continues.  Have a good week.  …………..  Tom  ……………

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