Re-test? Check. We’re going higher.

  • Posted by
  • on July 18th, 2012

 

We like the look of this market — with an added boost of confidence with the $SMH and Cloud stock action today ($VMW $EMC $FFIV)

 

Let’s go through what’s happened this summer:   #1 we broke through a descending 50 SMA which often is followed by failure.    No exception here as market immediately pulled back almost to the 200sma #2.   But then we broke through again #3,  and this second re-test showed the resilience of the bulls (especially in light of bond action).   Then we retraced, but this time only back to the 50SMA #4 which now is slowly turning upwards.    Today we pushed away from the 100sma and made a new high– stalling here at the high (and at $QQQ hitting 100SMA).

 

We’ve come a long way quickly and we’re extended after this V type move– so filling and backing is to be expected, but what is undeniable is the strength to retake the 50sma, test it successfully, and now to make a new high.  All very bullish.      And if we’re right we should get a plethora of great set-ups in the near future –don’t chase now,  we should get some good entries soon.

 

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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