Friday, July 1, 2011

Correction is over

Weekly DMI has turned positive for all indexes. It may not be that obvious for SPX but it is quite convincing for DOW, Nasdaq and Russell. It was a decent correction, around 8%, but now it's time to make money on the long side.

Not only weekly DMI has turned positive but price has managed to climb above the most recent downtrend line on daily and hourly chart.

Very likely we are going to see new highs by the end of he summer. Otherwise a triple top is going to form that obviously is going to be bearish. As usual, let's not get ahead of ourselves and better watch to see what market decides to do.

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