It was a good week for the S&P 500 bulls. They pushed the S&P 500 higher by 2.87% for the week. They started the week out slow, but were able to turn things around and didn’t look back after Monday morning. They were able to blow through the first area of resistance and aren’t too far off from the next level.
The recent price action is certainly bullish, but it hasn’t been enough to turn the longer-term momentum to the positive just yet. Both the S&P 500 and All World (ex-USA) indices are still sitting in a risk off position. There is this constant conflict between the markets depending upon time-frame. For example, the daily trend could be up while the weekly trend is down. This is exactly where we are today.
The markets we want to focus on this week are the emerging markets. They have picked up lately for a possible major trend reversal on the weekly time frame. We will more than likely get our toes wet on Monday with this index.
It should be another interesting week! We’ll see if the bulls can continue marching the wall of worry or if in fact, they will start taking profits and give the bears some confidence. Have a great week!
Adam Straseske, CMT
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