Here's the latest weekend update from Serge Perreault, a Chartered Professional Accountant and market technician located near Montreal, Canada. Serge has been following the U.S. market in a series of weekly charts. Here is his update on the S&P 500.

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The S&P 500 continued its ascension, on 0.3% below-average volume and on mixed & near-resistance momentum. Note also that: Since December 2012, RSI has been in overbought territory 85% of the time; in February 2011, a similar pattern had led to a correction of 17.6% within the next 6 months. Since March 2009, the index increased by 144% or 34%/year.

 

Note: For newcomers to technical analysis, here are brief explanations for the two key indicators that Serge features:

• ROC (Price Rate of Change)
• RSI (Relative Strength Index)

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(c) Serge Perreault CPA Inc.