The State of the Trend
Two weeks ago the prevailing sentiment was decidedly bearish, but given the close proximity of key support levels, the advice was to exercise patience and let the market tip its hand. And to the surprise of all those who saw the sky falling, the SP500 gained 5.6% in one short week.
Now, all of a sudden, sentiment is all bullish and the sky is the limit.
And maybe for a good reason, at least for awhile.
All three timeframes, daily, weekly and monthly, show that the uptrend is intact:
The Q's registered an even better performance, advancing 6.5%, and I'll switch over to them for further guidance. As the monthly chart below shows, QQQ is bumping against strong channel resistance at 59-60. A break above that level will send a strong message that the SP500 rally has indeed more upside left.