Something is going to Give
Yesterday the price pattern analysis for the Russell 2000 stock index joined the other stock indexes in full bullish mode. On the other hand our S&P 500 computer system is in full bearish mode. Granted the computer model is much more sophisticated than the chart pattern analysis but it is significant that this face off has developed.
No doubt some of this is the fact that recently the US markets have shaken off what Janet Yellen spoke of yesterday as ” soft numbers “. As she said, maybe it is the weather, and I would concur, but some of it is deeper. So what happens next? Will a market that doesn’t go down because it thinks snow and ice is the problem, go up when it melts?