I think the biggest thing holding the markets back at this point is the inability for the $SPX to put in a higher high. If the $SPX is setting up to get back in true rally mode, then putting in a new high above 1230 should happen this coming week, especially since it’s just 14pts higher. A new high above 1230 and a close above 1230 in the coming week could turn the 13 & 26 MA’s that I use on the weekly charts. This turning up of the shorter term MA’s is what I’ve been waiting for and would be a bullish signal going forward. However, we are not there yet. Still, the market has been moving with a positive bias over the last few weeks and as such and IMHO the riskier trade at the moment is on the short side.
Chart courtesy of StockCharts.com
Only the paranoid survive.
GL in the week ahead.