Charting the Markets: Bulls Make a Stand, But There Is an Issue
Here's why this week is critical.
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Close Look at the Charts
Finally some bullish price action for the S&P 500. We mentioned in last week's edition the chance of a low being established, but that it needed to be qualified by a higher high and higher low. Check!
We got that over the past week, but it wasn't easy. A huge rally on Wednesday with follow-through Thursday "cleaned the clocks" of the bears who were looking to take the market down a notch. It wasn't meant to be, at least for now.
Optimistic words on the Iran War ceasefire was enough to get investors off the sidelines, and thankfully with some good action by the Magnificent Seven names and other technology. Breadth was good across the board as this fickle indicator is now on a buy signal (it's been flipping back n' forth for weeks). Still, lower volume hit during the massive uptrend and that could be worrisome.
As for the indicators, there's some big improvement with the stochastics turning up, money flow bouncing off the zero line and candles turning from amber to teal (cautiously bullish). It won't take much to get total bull mode.
This week is critical to keep the momentum going and solidify that bottom at 6300 on the S&P 500.
