{"id":207196,"date":"2024-05-28T08:48:51","date_gmt":"2024-05-28T12:48:51","guid":{"rendered":"https:\/\/ibkrcampus.com\/?p=207196"},"modified":"2024-08-28T15:33:37","modified_gmt":"2024-08-28T19:33:37","slug":"chart-advisor-sp-all-time-highs","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/macro\/chart-advisor-sp-all-time-highs\/","title":{"rendered":"Chart Advisor: S&amp;P All Time Highs"},"content":{"rendered":"\n<p>By\u00a0<a href=\"https:\/\/links.investopedia.com\/u\/click?_t=36ba8fa8372241d58b3bfc06997a4332&amp;_m=75715ae4bb7c4f4e9277a1362948f36c&amp;_e=2Ii4Ug551Pgo30EZhl-4ODCYoeE_uoR-CU3Pj841y5T5EdLGl_tvH-JexSRNLCIlU2us1f45p_kpMfVFd9XjCmO1ww8DMGayCr0Qwxa_vtGlH-OQurscdSGZBZsoHesxV1sB4KveTI-2OkXidd_VZR171pkaRNz8_I1QZetRX-jN3SzI78Wz5EvQayJwOjADv3v8-iWW1u-LYFxlwgF4wreSKVDY-a0ync0mSO1vkEMVlBvhqeRkmAhu9VD1RF5eFp0gYsrQyVD5foNrnBm69LBPQRQGGuiMJ4GfbZH4dYgfQnf5YhZXktAldgcDzyxQ1Td1f7PqC8f600JsAPKJ3YU3aJc8xH-nNXd8vD9ljCpHi8VlSmf7qZtEyZRLNWqTU7Avc8eRSpMdUcndDsWbXMpLkOCs5DXYCoqZMbi5miCczGegopzm8mT1RlOPRuYxBw1BlqhSR1t6oL_r3fVmDA%3D%3D\" target=\"_blank\" rel=\"noreferrer noopener\">Alex Cole<\/a><\/p>\n\n\n\n<p><strong>1\/ S&amp;P SPDR: State of the Trend<\/strong><\/p>\n\n\n\n<p><strong>2\/ Momentum Analysis<\/strong><\/p>\n\n\n\n<p><strong>3\/ Data Visualization<\/strong><\/p>\n\n\n\n<p><strong>4\/ Volatility and Volume<\/strong><\/p>\n\n\n\n<p><em>Investopedia is partnering with CMT Association on this newsletter. \u00a0The contents of this newsletter are for informational and educational purposes only, however, and do not constitute investing advice. The guest authors, which may sell research to investors, and may trade or hold positions in securities mentioned herein do not represent the views of CMT Association or Investopedia. Please consult a financial advisor for investment recommendations and services.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-1\">1\/<\/h2>\n\n\n\n<p><strong>S&amp;P SPDR: State of the Trend<\/strong><\/p>\n\n\n\n<p>There has been a lot of excitement over the past few weeks as the S&amp;P 500 (as well as other major indices) has hit new all time highs.\u00a0 Using a GoNoGo Chart, we create a trend model by blending some of the foundational concepts of\u00a0<a href=\"https:\/\/www.investopedia.com\/terms\/t\/trendanalysis.asp?hid=c9995a974e40cc43c0e928811aa371d9a0678fd1&amp;did=13175179-20240528&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=052824#:~:text=Trends%20are%20identified%20by%20drawing,lower%20highs%20for%20a%20downtrend.\">trend following<\/a>\u00a0technical analysis, and then color coding the price candle (or bar, etc) according to the strength of its trend.\u00a0 We can see that with the close of trading on May 10th, GoNoGo Trend flagged a new \u201cGo\u201d, having risen out of a period of uncertainty (reflected by amber \u201cGo Fish\u201d bars).\u00a0 A few days later, as the trend strengthened from aqua to blue \u201cGo\u201d bars, price gapped to new highs above horizontal resistance.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"621\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/28.05-1-1100x621.png\" alt=\"\" class=\"wp-image-207197 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/28.05-1-1100x621.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/28.05-1-700x395.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/28.05-1-300x169.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/28.05-1-768x434.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/28.05-1-1536x867.png 1536w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/28.05-1.png 1920w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/621;\" \/><\/figure>\n\n\n\n<p class=\"has-small-font-size\"><em>Courtesy of TrendSpider<\/em><\/p>\n\n\n\n<p>Most recently, we see that price has fallen from its high, and GoNoGo Trend has weakened to paint aqua \u201cGo\u201d bars.\u00a0 Polarity tells us that what was once resistance can become support so we will watch to see if price can continue to find support at the horizontal level drawn on the chart.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2\">2\/<\/h2>\n\n\n\n<p><strong>Momentum Analysis<\/strong><\/p>\n\n\n\n<p>A technical analyst is sure to turn to the study of\u00a0<a href=\"https:\/\/www.investopedia.com\/terms\/m\/momentum.asp?hid=c9995a974e40cc43c0e928811aa371d9a0678fd1&amp;did=13175179-20240528&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=052824\">momentum<\/a>\u00a0after having attempted to understand the current trend.\u00a0 Momentum can explain much about the strength of current price movements.\u00a0 GoNoGo Oscillator takes the same approach to momentum as GoNoGo\u2019s original indicator takes to trend. It blends some of the most robust\u00a0<a href=\"https:\/\/www.investopedia.com\/terms\/o\/oscillator.asp?hid=c9995a974e40cc43c0e928811aa371d9a0678fd1&amp;did=13175179-20240528&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=052824\">oscillators<\/a>\u00a0into one indicator that highlights the insights momentum analysis provides but does not clutter the chart with multiple panels.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"659\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/28.05-2-1100x659.png\" alt=\"\" class=\"wp-image-207198 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/28.05-2-1100x659.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/28.05-2-700x420.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/28.05-2-300x180.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/28.05-2-768x460.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/28.05-2-1536x921.png 1536w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/28.05-2.png 1920w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/659;\" \/><\/figure>\n\n\n\n<p class=\"has-small-font-size\"><em>Courtesy of TrendSpider<\/em><\/p>\n\n\n\n<p>Looking at the GoNoGo Oscillator we can see that momentum broke into positive territory ahead of the new \u201cGo\u201d flag.\u00a0 This is important, because we know that momentum is a leading indicator and can help prepare the investor for important price movements.\u00a0 We also know that the GoNoGo Oscillator was calculated in such a way that the zero line becomes an objective level.\u00a0 On the break above zero, combined with the first amber \u201cGo Fish\u201d bar, we knew that the \u201cNoGo\u201d trend was likely over. Most recently, GoNoGo Oscillator has peaked twice in\u00a0<a href=\"https:\/\/www.investopedia.com\/terms\/o\/overbought.asp?hid=c9995a974e40cc43c0e928811aa371d9a0678fd1&amp;did=13175179-20240528&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=052824\">overbought<\/a>\u00a0territory (at or above 5) and falling below that level told us that price may struggle to go higher in the short term. This is in line with the weakness we see from GoNoGo Trend painting aqua bars.\u00a0 We can now turn our eye to the zero line.\u00a0 If the \u201cGo\u201d trend is to remain healthy, we will look for GoNoGo Oscillator to remain at or above zero.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3\">3\/<\/h2>\n\n\n\n<p><strong>Data Visualization<\/strong><\/p>\n\n\n\n<p>Technical analysts are the data visualization experts of the financial world.\u00a0 Using price charts we can literally see the trends that would be so hard to pick out of a table of data.\u00a0 However, we can go further, and highlight the important interaction between trend and momentum on the price chart itself using GoNoGo Icons.\u00a0 This brings our attention back to the price panel, and the important dynamics of supply and demand that can be seen at critical levels. There are two different types of icons that a GoNoGo Chart displays.\u00a0 The first is the Trend Continuation Icon.\u00a0 This icon is always a circle and can be seen in either \u201cGo\u201d trends or \u201cNoGo\u201d trends.\u00a0 We know the importance of the zero line when interpreting the GoNoGo Oscillator and the trend continuation icon appears when the oscillator finds support at that level in an up trend, or resistance at that level in a down trend.\u00a0 In a \u201cGo\u201d trend, the circle is green, and tells the user that momentum is resurgent in the direction of the underlying \u201cGo\u201d trend. We can see examples of these Go Trend Continuation Icons throughout the prior \u201cGo\u201d period.\u00a0\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"652\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/28.05-3-1100x652.png\" alt=\"\" class=\"wp-image-207199 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/28.05-3-1100x652.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/28.05-3-700x415.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/28.05-3-300x178.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/28.05-3-768x455.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/28.05-3-1536x910.png 1536w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/28.05-3.png 1920w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/652;\" \/><\/figure>\n\n\n\n<p class=\"has-small-font-size\"><em>Courtesy of TrendSpider<\/em><\/p>\n\n\n\n<p>The second icon that we see on a GoNoGo Chart is the Countertrend Correction Icon.\u00a0 These are red in a \u201cGo\u201d trend, and tell the user that momentum has declined from overbought levels.\u00a0 There is likely to be a cooling off period and in the short term price may struggle to go higher.\u00a0 We saw two of these Go Countertrend Correction Icons (red arrows) as investors digested the gains at new all time highs.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-4\">4\/<\/h2>\n\n\n\n<p><strong>Volatility and Volume<\/strong><\/p>\n\n\n\n<p>With the trend showing weakness on the recent pullback and GoNoGo Oscillator falling out of overbought territory, it would be wise to turn our attention to the zero line once again.\u00a0 As the oscillator approaches that level we must remember that in a healthy \u201cGo\u201d trend it should find support. In the recent \u201cNoGo\u201d correction, the zero line was tested from below and we see that it remained at that level for some time.\u00a0 That caused the climbing grid of GoNoGo Squeeze to reach its max.\u00a0 This visually reflects a period of reduced volatility as there is no directional momentum.\u00a0 Breakouts from Max GoNoGo Squeeze\u2019s can often lead to significant price movement.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"608\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/28.05-4-1100x608.png\" alt=\"\" class=\"wp-image-207200 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/28.05-4-1100x608.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/28.05-4-700x387.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/28.05-4-300x166.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/28.05-4-768x425.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/28.05-4-1536x850.png 1536w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/28.05-4.png 1920w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/608;\" \/><\/figure>\n\n\n\n<p class=\"has-small-font-size\"><em>Courtesy of TrendSpider<\/em><\/p>\n\n\n\n<p>We will watch to see if the zero line provides support, either quickly or in the form of another GoNoGo Squeeze.\u00a0 If GoNoGo Oscillator bounces back into positive territory, we will be able to say that momentum is resurgent in the direction of the \u201cGo\u201d trend and the chart will display a fresh Go Trend Continuation Icon (green circle). If this happens, we will expect price to make an attack on prior highs.<\/p>\n\n\n\n<p>&#8212;<\/p>\n\n\n\n<p>Originally posted 28th May 2024<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There has been a lot of excitement over the past few weeks as the S&amp;P 500 (as well as other major indices) has hit new all time highs.\u00a0 Using a GoNoGo Chart, we create a trend model by blending some of the foundational concepts of\u00a0trend following\u00a0technical analysis, and then color coding the price candle (or bar, etc) according to the strength of its trend.\u00a0<\/p>\n","protected":false},"author":186,"featured_media":207201,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":true,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[14,18,6,8,9,22,23,26],"tags":[262],"contributors-categories":[13686],"class_list":{"0":"post-207196","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-etfs","8":"category-macro","9":"category-north-america","10":"category-region","11":"category-securities","12":"category-stocks","13":"category-technical-analysis","14":"category-text-articles","15":"tag-spy","16":"contributors-categories-investopedia"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.8) - 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