Exceptionally bullish week

Very bullish week, indeed with SPX gaining no less than 64 points. Some people called it "a relief rally" bulls being happy that the fiscal cliff drama is over. Well, at least for now.

Needless to say that market is bullish on all time frames. Market is now close to its highest level in four years. It pretty much touched the level seen in September (1,467). Obviously, for the long term sake SPX needs to go over the September high but for now I think bulls are happy and I don't seem eager to repeat the last week scenario. For now they are in a very good position.

The second reason I say the next week is not going to be too dramatic is that market is way above rising SMA 120 on two hours chart and as you probably noticed in the past price tends to stay slightly above the two EMAs in an uptrend.

The following weeks are probably going to be exciting since once again is the earning season. Obviously, there are going to be up days and down days but overall I expect the market to climb a little bit almost each week.

Have a nice trading week!

babaro

P.S. The earnings season is starting tomorrow not next week as I said above