Stock Market Technical Analysis Blog
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The markets were slightly up today on extremely low volume which was no surprise. Tonight I would like to take a step back and look at the Nasdaq, AAPL, QQQ, and the Dow Weekly bars charts with the red 5 and pink 50 EMA lines applied.
The 5/50 EMA line bounce is the most prized setup in technical analysis. When you have the 5 line being turned up by the 50 line on the Weekly bars chart it's typical to expect six to twelve weeks of upward movement. Looking at the current Weekly bar on each we can see that since last Friday night they have turned the red 5 EMA line sideways on the topside of the 50 EMA line on all four, Nasdaq, QQQ, AAPL, and the Dow.
If the current rally continues through the end of next week we will start seeing the 5 begin rising from the 50 on all four and the buy programs that will be triggered in small capital firms, hedge funds, and all big Wall Street Firms will be a bullish force that will put anyone still short this market into a world of pain.
Alan
P.S. Happy Thanksgiving to All
P.S. Happy Thanksgiving to All
