The S&P 500 remains in a “Go” trend and GoNoGo Trend is painting bright blue bars.
After a recent Go Countertrend Correction Icon (red arrow) we saw a period of weakness as the indicator painted weaker aqua “Go” bars and GoNoGo Oscillator fell into negative territory. Now, price has stabilized after setting a low and GoNoGo Oscillator has rallied to ride the zero line, reflecting the virtual tug of war between buyers and sellers at this level. GoNoGo Trend is again painting strong blue “Go” bars but we see that price has been unable to set a higher high. With the oscillator at zero for several bars we see a GoNoGo Squeeze building and we will watch to see if the Oscillator can break out of the GoNoGo Squeeze into positive territory. If it does, then it would indicate resurgent momentum in the direction of the underlying “Go” trend and we would expect price to attempt to challenge for a higher high in the coming days. Should the Squeeze be broken with the Oscillator moving into negative territory, we could expect downside pressure on price.
