“The Bull trend is still North, the money continues to flow in” — Paul Ebeling
What happened last week
All major US stock market indexes consolidated and held.
The DJIA is catching up and it recovered more than 200 pts off of its lows.
Looking at some important groups, and taking the indexes as a whole, we they look ready for another leg North.
The S&P 500 broke the 10-day EMA after holding it on the Wednesday low. Then, it came right back to hold the 10-day EMA with a doji. The S&P 500 is the index that actually tested the 50-day MA in late January, so it is the least extended in here.
The NAS Comp gapped higher Tuesday and then faded during that session. On Wednesday and Thursday, it fell to the 20-day EMA. Then, it tapped the 20-day EMA Thursday and rebounded to close above the opening price. It even showed a doji with a tail at the support. This was a test of the near support in this run without an intervening 50-day MA test. But, the NAS is still extended in here, so expect more consolidation before a bounce.
What to expect this week
The news will be all good and constructive news. It is the kind of news around which the stock market should rally.
The trend is North, and as we all know the trend is our friend and we will take what the market gives.
Again, the money is flowing in, in record amounts and the world markets are overall Bullish on this ongoing economic recovery.
However, pay attention, the market can reverse on a dime, and remember it is your money so your responsibility.
Have a healthy week, Keep the Faith!
Latest posts by Paul Ebeling (see all)
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