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Since the late-April highs, many analysts have turned negative on the intermediate trend, and while they may be right, the charts of the S&P 400 and S&P 600 suggest that we have just seen a normal correction. They were strong on Thursday after testing the rising 200-day MAs on Tuesday before reversing to close strong. Both continue to be stronger than the S&P 500 as the RS on both is back above its WMA and their uptrends. A move above the May 13 highs should signal new highs ahead.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.
