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.
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