Last week, the Bulls' performance surprised many and some were badly hurt by Wednesday's rally. Followers of this channel, however, hopefully avoided this trap by staying aware that a bullish run was possible given the market's mixed signals. Now, the Bulls have confirmed their control by establishing both a higher low and a new high on the weekly chart. Notably, they managed to maintain this new high into the week’s close.
At this point, my bias is 90% bullish. The only concern is the divergence between price action and market internals. While SPX set a new high, there were less stocks reaching new monthly high than lows. Although this isn’t a strong indicator, it’s something to keep in mind if suddenly things start to shift. But until we see clear signs of seller strength, we should remain aligned with the buyers.
Disclaimer
I don't give trading or investing advice, just sharing my thoughts.
At this point, my bias is 90% bullish. The only concern is the divergence between price action and market internals. While SPX set a new high, there were less stocks reaching new monthly high than lows. Although this isn’t a strong indicator, it’s something to keep in mind if suddenly things start to shift. But until we see clear signs of seller strength, we should remain aligned with the buyers.
Disclaimer
I don't give trading or investing advice, just sharing my thoughts.
Note
Weak price action within Friday's range. Market is waiting for Wednesday's economic reports and FOMCNote
Great example of H&S pattern cancellation. Happens more often that you would thinkNote
Today important economic data is realeased before market open, FOMC in the evening. Watch out for volatility. Also whether results are within expectationsNote
No surprises with FOMC. Market is uber strongNote
At one hand we have a failed bearish break out, on the other bulls were not able to close above open, leaving bearish "hanging man" on the daily chart. We might see another downside auction tomorrow but anyway market is very strong. Buyers have full control of the weekly timeframe.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.