The SPYs continue their move higher. Most importantly, today prices moved through key resistance levels. Also note the 200 day SMA is in reach.
The QQQQs have advanced beyond the 200 day SMA printing a strong bar today. The bullish orientation of the SMAs (shorter above longer, all moving higher and prices above the SMAs) continues.
The IWMs advanced through key resistance today with a strong bar.
The bottom line is I still don't see the fundamental reason for this rally. At best the fundamentals are weak. But it seems as though traders are moving in solely in anticipation of a recovery without really considering the fundamentals. In addition there is probably a bit of short-covering going on as well.
1 comments:
Bonddad:
As you have pointed out we are rallying nicely. We have rallied 34% so far without a correction. When will the correction occur? This can't go on forever (it never does.) Any ideas? I am a neophyte at doing Fibonacci analysis, but here goes. We have recovered approximately what we lost on the last down (OK, we are not quire there yet, we need to get to about 934 to recover 100% of the last dip down). This implies that the S&P 500 target would be about 1033 for 38.2% above the shoulder. You are much better at this kind of thing than I am, so again what do you think? (PS: Somehow the market always proves me wrong, but it's fun to speculate anyway.)
As always , I enjoy reading your blog.
rntheo
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