The strength of this week¹s up move in the S&P 500 had a "familiar feel" to it. Why? After such a nasty close last Friday, prices managed to avert a plunge on Monday morning, turned up, and (perhaps with a nudge from Warren Buffet on Tuesday morning) did not look back. Friday's "bad news is good news" reaction to the Employment Report turned out to extend, perhaps fuel, additional strength for a fourth up-day this week.
Actually, we have seen consecutive up-days in the post-March bull phase, haven't we? Off of the July, September and October pullback lows notice the powerful vertical assault and the overwhelmingly high percentage of up-days. It just so happens that since the July low, a 21-day cycle low seems to coincide with the start of most of the significant up moves and also seems
to be associated with the initiation of a consecutive number and/or high percentage of up days.
Let's notice that this week's strength started at the projected low of the 21-day cycle another 8%, 21-cycle advance, which projects next to the 1111 target zone.
Sign up a FREE 15-Day Trial to Mike Paulenoff's ETF Trading Diary!
No comments:
Post a Comment