Wall Street Week Ahead: Waiting for technical signals

English: Wall Street sign on Wall Street (Photo credit: Wikipedia)

The S&P 500 tortoise continues to beat the skeptics. In the absence of data or policy catalysts and with the S&P 500 near four-year highs, market participants are hoping technical indicators hold the clues on whether stocks will sell off into September following a slow-speed rally.

The S&P 500 is a scant 0.06 percent away from closing at highs last seen in the pre-crisis days of June 2008, even as an unimpressive earnings season draws to a close. The looming U.S. presidential election adds to the uncertainty, and inconclusive economic data makes any bet on further economic stimulus from the Federal Reserve a risky gamble.

“I’m not laying out any new shorting strategies on fear the Fed could come in,” said Brian Amidei, a managing director at HighTower Advisors based in Palm Desert, California.

True to form, market volumes have dried up in August. To some, the lack of volume is a clear signal of the relative weakness of the recent rally. Wall Street this week posted its two lowest volume days of the year, not counting half-days.

What has some other strategists nervous is what they see as relative complacency among investors. Volatility levels as implied by the CBOE Volatility index.VIX, or VIX, are at their lowest since June 2007. ... Continue to read.

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