The Bull is Still in Charge
by
, 05-01-2016 at 10:10 AM (2277 Views)
The major averages posted gains for the month of April, but the S&P 500 was up only 0.39%.
Still, it was a gain.
Now we have entered the weaker of the two 6-month cycles. "Sell in May and go away" is an old adage and it has been largely a good one for those who follow it's longer term advice.
I posted this chart recently, which is a weekly chart of the S&P 500. I have embedded some envelopes above and below the 50 dma to gauge price action around that popular average. Price has been struggling with the upper 3% envelope for some time and last week price was rejected with a weekly loss from that level.
The NYSE paints a similar picture as price tagged that 3% envelope and closed out the week for a loss.
Does this mean the market has peaked on this last "up" cycle? Possibly. But sentiment is largely neutral so a bottom may come much quicker than the previous two bottoms.