S&P 500 Grind Higher Goes On, Regardless of Daily Setbacks

DaGeek

The runup to yesterday’s US open and the regular session’s trading confirmed my call that stocks would break above the key resistances. And they did effortlessly overcome the upper border of March’s gap and the 61.8% Fibonacci retracement without really looking back. Now that they trade also above the 200-day moving average, how far can the bull run reach?

S&P 500 in the Short-Term

Let’s start with the daily chart perspective (charts courtesy of http://stockcharts.com ):

A resoundingly higher open followed by more buying before running out of steam 30 minutes before the closing bell – that’s a fair characterization of yesterday’s session. As it happened on reasonably high volume and the candle’s shape isn’t that of a profound reversal, the implications are bullish for the days to come.

It’s been only the 200-day moving average that provided resistance to stocks yesterday, and while the sizable upper knot isn’t a

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