More Continuation Signals in a Choppy Market
Key points:
- Recent notes highlighted unfavorable factors for stocks (many new highs and new lows, and concerns regarding seasonal weakness)
- Nevertheless, signals from other indicators suggest an ultimate bull market continuation
- Signals from our Risk On / Risk Off and VXX Optix indicators have added weight to the favorable side of the weight of the evidence ledger
The stock market is hanging on
Some warning signs (see here and here) and conflict in the Middle East have stock market investors on edge, and understandably so. Despite all of this - for now anyway - the major stock market indexes are holding in an uptrend. The chart below shows price action for the S&P 500 Index and the 200-day moving average.

While countless predictions about whether the uptrend will hold abound, in the here and now, as long as the index holds above its
