As the markets are making all time highs, can the bulls keep pushing higher?

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Weekly Market Focus Report

"Kindness is the language the deaf can hear and the blind can see."

Samuel Langhorne Clemens, aka Mark Twain, American writer, humorist, entrepreneur, publisher, and lecturer. (November 30, 1835 - April 21, 1910)

With Thanksgiving upon us, I hope you are having a nice holiday week. Today we will be discussing the following topics:

What is the most recent Weekly Market Sentiment?
What might our Market Cycle Volatility Trend be telling us?
The question now becomes: Where might the markets go from here?

Let's get going!

Weekly Market Sentiment:

Bears out pace the bulls last week as price action ends slightly down on a week over week basis.

The broad markets lost ground slightly from its 3600.16 Monday open to a 3557.54 Friday close for slight 42.62 point decrease on the week.

Very similar to the week prior, last week again we saw where the markets open on Monday morning on a gap higher, closing lower than it's open, but still up on the day, to then move sideways to down most rest of the week, digesting the gains staying above its 50 period moving average and holding on to the weeks gains.

Market Cycle Volatility Trend:

As of November 17th

Green / Up

(click image below to enlarge)

November 24th, 2020 Market Cycle Volatility Trend

When looking at the Market Cycle Volatility Trend above, the chart shows us when the financial markets turned to a green lower volatility up trend on November 17th, 2020 when the market cycle volatility trend went green from a prior yellow up condition.

To summarize, we have an up trending / lower volatile market currently relative to its past, continuing to melt sideways to higher at or near all time highs.

The question now becomes:

Where might the markets go from here?

The broad markets are continuing to drift sideways to up as they melt ever so higher into new found all time highs.

Volatility appears to be coming more out of the markets (for now anyways) as we can see price action of our volatility trend which is now green as of Tuesday of last week.

As I stated in last weeks Market Focus Report, "With the sideways / consolidation move we had last week, it wouldn't surprise me if the markets were to break out of its current trading range to move higher from here in the coming week ahead."

This is exactly what is happening in the markets. Stay tuned to see if the bulls can keep control of the markets to continue to push even higher. If this is the case, the 50 period moving average will continue to curl up, as we it doing now colored in blue, until it is once again tested at some point in the future.

Thanks for reading...

Today, I wrote about the state of the markets, including the current market cycle trend using my proprietary trading tools, where the current market cycle volatility trend is, and where might the markets go from here.

Questions, comments, corrections, or suggestions? Send me an email, I would love hearing from you!

Until next time ... Stay safe, and happy trading!

Disclaimer: I either recently had positions in these names, currently have positions in these names, or may be taking positions in any of the proceeding names within the coming days or weeks ahead.

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No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed. The past performance of any trading system or methodology has the benefit of hindsight, and is not necessarily indicative of future results.