The S&P 500, which closed up a buck and change, hasn't had a close that narrow -- like less than two points -- since Nov. 6. If you squint, you can see is the day where the lower line for the S&P chart begins. Either way, the S&P remains in the channel and if this continues, it could very well play out like the prior two months.
Breadth was strong. In fact, it was quite strong. Yet, it hasn't been able to move the McClellan Summation Index, which remains flatlined for the last week. I can't even provide an explanation for this, but I can tell you how unusual it is to see the Russell 2000 up nearly 10% in just over a week and the Summation Index refuse to join the party.
Speaking of the Russell and channels, the Russell 2000 fund (IWM) channel remains intact, since it has now traveled back to the upper end.
I should also note that the Transports finally made a new high this week, as they had failed to take out the December high prior to this.
But I think we need to talk about bonds. It is all anyone is talking about. That base that rates broke out from measures to around 1.20%, which is almost where we saw rates get to on an intraday basis. I would think it is time for a pullback here.
If we use the iShares 20-Plus Year Treasury Bond, an exchange-traded fund for bonds, we can see a channel has developed over the last several months. This differs from those shorter term, narrower channels we see in the stock indexes, because these really do provide for a range expansion, which we have seen since the calendar turned to 2021. Using this channel, it also looks like it's time for a short-term rally in bonds -- a move down in interest rates.
So many of the high-paying dividend stocks have come down quite a bit lately, yet the utilities have been much more dripping than plunging. And despite the move in rates, the worst thing they have done so far is mill around. If the Utes can't break under 825, then maybe they are going to get oversold enough to rally, too.
All in all, the indicators barely budged on Tuesday, despite the good breadth and despite the new high in the Transports. Also despite the move in interest rates. It's a little eerie.