Welcome to the Chart Fix!
In April the stock market jumped higher. The big index SPY, the Nasdaq tracker QQQ, and many tech stocks all moved up. Even the equal‑weight S&P 500, which usually moves a bit slower, stayed in an uptrend and is forming a bullish continuation pattern.
SPX High‑Low Line Stays Bullish and Turns Up
March was a rough month for stocks, but the S&P 500 High‑Low line did not turn red. That means the market did not make many new lows. Our breadth models also stayed bullish throughout March.
The chart below shows three panels: the S&P 500 price, the number of new highs and lows, and the High‑Low line. The line goes up when new highs are more than new lows, and it goes down when the opposite happens.
New highs were strong in January and February, fell a bit in March, and started climbing again in mid‑April. The High‑Low line crossed above its 20‑day EMA on May 2 and has stayed there, showing that bulls still have the advantage.
Equal‑Weight S&P 500 ETF Shows Bullish Continuation
The equal‑weight S&P 500 ETF (RSP) moves a little slower than SPY because it has not yet broken its February highs. Still, the long‑term trend is up and a classic inverse head‑and‑shoulders pattern is forming, which is a bullish sign.
If the price breaks above 205, the pattern will be confirmed and the rally could broaden.
The RSI indicator moved above 60 on April 14, putting it in a bullish zone. As long as RSI stays above 40, the market has the edge.
Cybersecurity and Cloud Computing ETFs Reverse Their Downtrends
Tech stocks, especially semiconductors and AI‑related names, helped lift the market in April. The same strength is now appearing in cybersecurity (CIBR) and cloud computing (SKYY) ETFs.
CIBR had been falling since October, but in mid‑April it formed a strong “Opening Marubozu” candle—an almost perfect up‑day—rising 9.45%. This pattern shows heavy buying pressure.
After the Marubozu, CIBR broke out and began an uptrend. The price‑relative chart (CIBR vs. RSP) also turned positive, meaning CIBR is now outperforming the broader market.
SKYY showed a similar story. It posted an Opening Marubozu in mid‑April, jumping 12.49% and breaking the March high. The fund kept climbing for three weeks.
Both ETFs are now trending higher, and their relative strength against the market suggests that the tech rally could continue.
Source: Materials provided by https://articles.stockcharts.com.Note: Content may be edited for style and length.