Stocks Flat After New Highs

Stocks have topped out just under our next profit target at 4729. We are seeing several red triangles on the KRI, suggesting that they are finally meeting resistance. The S&P 500 appears to be consolidating between 4693, and 4729. The consolidation is healthy, as we have been rallying since October, and were starting to look hyperbolic. We do appear to be seeing a bear wedge with a lower bound at 4693, and if we break lower, we have a vacuum zone down to 4649. The Kovach OBV has dipped sharply with the consolidation, so watch for more momentum to come through before we can expect another breakout.