by admin
Bulls Reclaim Long-Term Support (by Drew)
Another good article that makes the case for short-term bullish. As regular readers might have noted, our current view is short-term bullish. Near term resistance on S&P 500 is in the 1165-1175 area.
“The force of the last week’s bullish swing was enough to reverse bearish momentum trends on the S&P 500 and the Dow Jones Industrial Average. Weekly MACDH momentum ticked higher on both of these indices, after six straight weeks of declines. Although the MACDH sits below the zero signal line, we can now say that bearish momentum is declining; the bears are losing control of the underlying market trend.”
RSI has moved above 50 as well across the board, so the bulls have made substantial progress over the last two weeks. We remain cautious, as volume was a bit anemic last week, so we may see some consolidation during the upcoming week as prices fight to break through the highlighted resistance area, however the intermediate-term trend is to the upside.
