Re-test? Check. We’re going higher.
- Posted by admin
- on July 18th, 2012
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.blog comments powered by Disqus
- Goodbye sweet trend
- Update III: Now what?
- Will it be any different this time, part II
- Will it be any different this time?
- The perfect chart and goal
- Government shutdown/Debt crisis in perspective — see yellow box
- John Cleese telling it how it really is
- Bit of monthly perspective on the Russell
- Keep swimming but with an eye on the shore
- Make peace with not catching every move