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.

blog comments powered by Disqus
High Chart Patterns Blog