Rising Market Trends And Consumer Confidence
Chris Kimble | Jan 20, 2017 01:49PM ET
Consumer confidence continues to move higher, reaching above the highs hit back in 2007. Long-term S&P 500 returns are far below historical norms when confidence is this high. Just to be clear, though, we're not saying that high consumer confidence means the market is at a top.
Below is a look at the Advance/Decline line on a short-term basis.
It could be important for support of this bearish rising wedge to hold.
It could also be important for the A/D support line to hold due to tests currently underway.
Let’s be clear about this. All four indices above find themselves in rising trends and nothing has happened to change that trend. Breakout attempts by each are in play. If you believe in trends -- we do -- breakouts could happen at these levels. If they do, it would send a very positive message to the risk-on trade, which would attract buyers.
On the flip side, this is NOT a place that the risk-on trade would want to see the A/D line break support or for selling to happen at the top of these channels.
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