The Standard and Poors 500 Index (SPX) turned in another sideways performance this week, opening at 2726 and closing at 2721, down five points for the week. I have drawn a downward trending line on my SPX chart, starting with the high on January 26th and then touching the March 13th peak. Many analysts had concluded that the bull market was over and were pointing to this trend line. But then SPX broke through that trend line on May 9th and even gapped open higher the next day, and that price action appeared to confirm that the bull market was alive and well.

I drew a new trend line on my SPX chart this week that tracks this bull market back to November 4th, 2016. That trend line remained unbroken until the February 8th correction this year. On May 11th and then again on May 14th, SPX closed above that long term bullish trend line. But then we started treading water. In the next trading session, May 15th, SPX opened at 2719, only two points below today’s close. SPX remains above the recent bearish trend line, but SPX is also below the long-term bull market trend line. The market has just wandered sideways for nine trading sessions and is in what I am calling “no man’s land” – not bullish and not bearish.

Trading volume is an important technical indicator that we may understand in a very pragmatic sense. When we see trading volume spike higher, it reinforces the price direction. Increasing volume on a price spike higher accentuates the bullish nature of that price move, and conversely for price declines. The recent trend in trading volume confirms the sideways, non-directional nature of this market. Trading volume for the S&P 500 companies has been well below the 50-day moving average (dma) for the past sixteen trading sessions. In fact, if we exclude just five days of above average trading volume, this low volume trading market is in its eighth week.

The Russell 2000 Index (RUT) has traded much more bullishly than SPX most of this year. RUT didn’t pull back as far during the February correction and has put on a remarkable run from early May through this past Monday, gaining nearly 6% in less than a month. Conventional wisdom ascribes this difference to the fact that the Russell 2000 index is predominantly, if not entirely, made up of domestic companies. These stocks may not be as spooked by the prospects of a trade war and may explain the divergence of SPX and RUT.

The S&P 500 index’s volatility index, VIX, opened the week at 13.4%, and closed today at 13.2%, essentially unchanged for the week. These markets and the accompanying volatility remind me of Goldilocks – not too hot and not too cold.

This is an unusual market in my experience. Corporate earnings are setting records, beating analyst estimates at unusually high rates. Companies are even complaining of being unable to fill open positions – what a change! But you wouldn’t know that by watching the market recently. News is interpreted with the worst possible implications. The doom and gloom folks must be enjoying this moment.

ABMD, HFC, and NFLX continue to trade higher this week in this sideways market.