Stocks Reject All Time Highs!! What's Next??
We called out resistance at new highs with stocks for many reasons. The higher highs were increasingly less pronounced, momentum was sluggish and the Kovach Chande was gradually tapering. That and being at or near ATH's would take some momentum to break through. We were spot on with this analysis. The S&P tried to break new all time highs, and did so for a split second before completely and utterly rejecting them, diving to support exactly at the levels we identified. It sliced through 3898 to finally find support at 3882, which would have been a great level to buy back, and some readers did take advantage. Currently we seem to have gained some momentum from the bounce off 3882. The Kovach OBV has turned positive again, and the Chande has swung up. This however suggests that we are back to overbought territory and are due for a rejection of highs at 3928 or 3937. If we are able to break highs again, which will likely happen next week 3963 is the target.
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