Just a quick glance at the chart will show you that $ES_F was heading downwards pretty aggressively until the first red line; the first big E.R. reports of the season. $NKE and $MU crushed their reports, and the markets responded upwards...but not on much .
The second red-line shows another save of $SPY ... aided by beats by $RHT and $PAYX .
Rinse and repeat for a while...then the final line is at April 6th, when the first big bank came out.
$GS - Missed EPS but big revenue beat
$WFC - Beat top and botton
$C Beat top bigly , slight miss bottom line.
The markets were happy with that but then geopolitical tensions settled in towards the end of the day which caused the markets to pull back.
The upside resumed yesterday, once again on good .
But the issue I see is illustrated by the purple price line. If you look at the OBV at this price level vs the OBV when the S&P 500 Index was at this level before, we are way below where we used to be OBV wise. This divergence is .
The indicator shows that there has been some buying, but the size of the buying has dropped on each spike since the largest one. The follows a very similar pattern (as it should, confirming each other).
So I think we will indeed see some more upside in the near-term...but some large E.R. misses or another geopolitcal event could really pull us down viciously.
Or maybe we continue to float up slowly throughout the rest of E.R. If that happens, I'd want to see the OBV and the start to move up aggressively to at least where we were in early March. If that doesn't occur the markets may very well collapse at the end of the season (if not before that).
Keep posted over at my blog: