Chart Signal with Stocks Approaching All-Time Highs: The Williams %R technical indicator confidently indicates that the rally could encounter some resistance.

Despite the chaos of tariff wars, persistent inflation, and other potential party poopers for the bull market, the S&P decided to throw a record-breaking bash this past week. Investors have been tackling these market hiccups with a "yeah, but..." attitude, pointing to earnings that are outshining expectations, market momentum, and other shiny positives.

What do the charts say? Investors who like to play detective with charts might notice that the Williams %R technical indicator is tiptoeing towards a sell signal.

Discover the excitement of Williams %R! What exactly is it?

Though it might not be the prom king of indicators like moving averages, MACD, RSI, stochastics, and their pals, Williams %R is like that quirky cousin with a lot in common with stochastics. It checks out the price of an investment or index compared to the highest high over a set period. Basically, it sizes up the latest closing price against the highest price in a given timeframe. Meanwhile, stochastics are busy comparing the latest closing price to the lowest price during a similar stretch. 

Williams %R is a momentum oscillator that likes to hang out between 0 and –100. If it’s chilling between 0 and –20, it’s usually a sell signal, while hanging out from –80 to –100 is a buy signal. Plus, if it crosses above the –50 level, it’s throwing a bullish party, but if it dips below –50, it's more of a bearish bummer.

Recently, Williams %R ticked in near 0. Because it is between 0 and -20, this indicator is registering a short-term sell signal. The last cross above the -50 mark was back in mid-January, when Williams %R crossed above that midpoint (a bullish signal).

It’s worth noting that oscillators—including Williams %R—can remain in what is considered overbought or oversold ranges for extended periods of time.

The bigger picture

Sure, using Williams %R all by itself to make trading decisions is like trying to win a dance-off with just the Macarena. You need a full dance crew of technical and fundamental data points to really bust a move and get a solid outlook on a stock or the whole market boogie.