For the majority of the broader markets and sectors, last week was a consolidation week. At the beginning of the week, prices moved lower and then retraced back up at the end of the week — most of that happening on Friday's gap up.

With the vast majority of markets and sectors in weekly downtrends and close to their respective resistance areas, it’s a high likelihood that we are going to see a stall in this move higher soon.

Whether that results in a downward move or sideways consolidation is unknown.

While prices and market internals are close to lining up for a bearish signal, determining the exact point in time — and how it will happen — is extremely difficult.

 

Below is a daily/weekly chart of SPDR S&P 500 ETF (SPY).

 


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