SPX suffered a small pullback today but the long term view remains bullish. Yesterday decision to keep the rate interest low until late 2014 pushed the market and commodities up. Gold also moved up today despite general market losing a few points.
On short and intermediate time frames market remains bullish. Looking at the hourly chart you can see that SPX barely touched EMA 25 today but SMA 120 that, when crossed, usually function as an indicator of a trend change stays comfortable around 1298.
Daily chart also looks bullish. Notice the positive DMI but also that the "golden cross" is imminent at this point. It is probably going to happen next week.
Weekly chart shows an EMAs bullish crossing. This pair of EMA worked really well in the last 20 years but gave us a 100 points whip-saw lately. The fact is that market was in really trouble just a few months ago (worse than last year) and without intervention we were going to see a full scale bear market.
On the upside watch the next resistance level. It is actually a whole resistance area between 1,340 and 1,370. As I mentioned before it is very important to see a new high, above 1,370 before a significant pullback. That will reassure bulls that the bullish momentum remains intact.
All the best!
babaro
On short and intermediate time frames market remains bullish. Looking at the hourly chart you can see that SPX barely touched EMA 25 today but SMA 120 that, when crossed, usually function as an indicator of a trend change stays comfortable around 1298.
Daily chart also looks bullish. Notice the positive DMI but also that the "golden cross" is imminent at this point. It is probably going to happen next week.
Weekly chart shows an EMAs bullish crossing. This pair of EMA worked really well in the last 20 years but gave us a 100 points whip-saw lately. The fact is that market was in really trouble just a few months ago (worse than last year) and without intervention we were going to see a full scale bear market.
On the upside watch the next resistance level. It is actually a whole resistance area between 1,340 and 1,370. As I mentioned before it is very important to see a new high, above 1,370 before a significant pullback. That will reassure bulls that the bullish momentum remains intact.
All the best!
babaro
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