We had a very nice week in the markets with over a 2% gain in most indexes. Bullflag breakouts and daily buys cancelled last weeks sells. Now we need this move to follow through to take out highs.
Last week the S&P500 fired a daily sell signal and this week price cancelled that out and put us back into a daily buy. It was also a very nice clean bull flag breakout. Price should now carry us back to the last high of $2111. The level needs to be taken out and if it does, we could run. Volitilty is low and even the DMI is look favorable. A lot of little signs are indicating we should move higher.
The Small Cap did the same as the S&P in that it cancelled the daily sell and put us back on track with a daily buy. The Bull flag breakout here is sloppy and not very organized but that doesn’t mean price will not take off. Also just like the S&P, the last high needs to be taken out and taken out soon. If that happens, I see no reason prices will not continue higher.
The International also confirmed a daily buy signal this week and this is the first positive that has happened here in a very long time. Is the I-fund about to turn? I can also see that the current price is very close to the monthly buy level. The current bull flag breakout, even though sloppy, should take us to new recent high to a point of $63. So it is something to watch next Tuesday for a long term entry.
Bonds did nothing this week. Price is in a grind. Long term, everything still looks good but do not expect big gains here. Just a little bit here and a little bit there.
Conclusion: Monthly moves will be next Tuesday into Wednesday. Long term we are looking good. Summertime grind is here and it is the most common event. No gain, just sideways grind.
No comments:
Post a Comment