Buyers are in control of the board stock market.
And I think the market is setting up to make new all-time highs this week
But, I don’t think this move is sustainable.
Let me tell you why.
High yield sector (HYG) is generally a leading indicator of the broader stock market. It can reveal where the stock market is headed over the next few days or weeks.
And for the past few days, HYG has been declining.
In fact, it broke below the 9-day exponential moving average yesterday.
The 9-day, exponential moving average, or “EMA,” is available on any free charting site. (I used stockcharts.com here).
Without getting too technical, it’s just average price the stock has traded over previous 9 trading days.
I believe it’s the defining line for the short-term momentum.
Take a look: