The 25 System, Stock Index Portfolio 18, and Diversified Portfolio 57 continued to add some significant gains and additional equity peaks in this runaway bull market move to new highs in the S&P 500 as well as the Nasdaq 100 index.
There are many short-term topping patterns and reversal patterns that are only acting as long entry continuation patterns. V-Reversal has 3 losses in the last two days on the short side. The stock indexes have gone from oversold to overbought in half a month. It's unusual to see a market go from oversold into what looks like melt up mode.
We had discussed how the pullback had been a slow rotational pullback based on fundamentals and now that there seems to be some resolution in the Middle East, the stock indexes are at or near new highs. The market rallied for a different reason from which it was initially selling off.
Yesterday we discussed how markets, historically speaking, go up on the escalator and down on the elevator while this pattern seems to have reversed lately. Investors fear missing gains more than they fear losing money.
The Slow Stochastic Oscillator (using the generic Tradestation inputs) reached its highest level in over 10 years and the 3rd highest value in 20 years. At the close it was 99.18. In the overnight session it is at 99.67. (The oscillator ranges between 0-100). The highest closing level in the last 20 years was 99.53 on October 19, 2015 and the second highest closing level in the last 20 years was 99.23 on December 24, 2009. This is not a sell signal but an indication of how quickly this rally has happened. One word you hear quickly from the financial media in selloffs is "oversold". You rarely hear the word "overbought".
Hypothetical Trading System Signals on 04-15-2026
25 System Portfolio NQ =+$3,175
7 System Portfolio NQ = -$1,740
3 System Portfolio NQ = -$1,740
2 System Portfolio NQ = -$1,740
Stock Index Portfolio 18 = +$14,520
Diversified Portfolio 57 (NQ Only) = +$14,520
Silver Portfolio = -$8,975
50K Portfolio (Micros) = +$566 (without Gold and Silver)