Stock Market Viewpoint
click on image to enlarge
Following up from last night's blog where at the end of my closing paragraph I discussed that if the market can climb through Monday and Tuesday, we should be good for a nice channel run. The reason we must get through these two days is that the S&P and Nasdaq must cross back above their 50 day EMA lines shown in the lower charts above. They both must also break out of their descending short term channels shown in the upper charts. We are up to all four resistance lines already this morning.
The bears know that if these resistance points are cleared they have very little chance of stopping a market run back up to recent highs as I discussed in last night's blog. These lines are everything for the bears, expect them to take a hard stand here. If we clear these levels they will be forced to cover their short positions and the swing trade higher will be on.
Trade well my friends