friday wrap

market vibes

April 25…)

“It's a rare person who wants to hear what he doesn't want to hear.” Dick Cavett

Bonds finished the day and week on the highs. Prices failed to break through the range top, but there’s a sense of upward momentum.

Same idea in stocks, closing on the high of the day and week. However, S&Ps did not penetrate the April 3 high.

So far in 2025, the directional movement index has generated just 6 blue bars. A blue bar indicates the algo sees more highs in a 10-bar sample than lows. Every other bar, representing a single session, is red, meaning the opposite; more lows than highs… Click the link to read the algo. It’s very simple, but pure genius, I think.

A trade above the April 3 highs will almost certainly confirm prices are trending up with a blue bar. I’ll probably trade from the long side as long as the bars remain blue, until and if we test the 200-day MA at 5871 (noted on the chart).

I’m not bullish on stock indexes for a lot of reasons, but I respect the technical setup, and markets don’t care what I think. If they’re going up, I am too.

Ending the week … gold looks a lot better than it looks. Bitcoin earned its honors. And an old English adage in the vibe.