We like the look of this market -- with an added boost of confidence with the $SMH and Cloud stock action today (VMW, EMC, FFIV)
Let’s review what’s happened this summer:
- We broke through a descending 50-SMA, which often is followed by failure. No exception here as market immediately pulled back almost to the 200-sma.
- But then we broke through again...
- and this second re-test showed the resilience of the bulls (especially in light of bond action). Then we retraced, but this time only back to the 50-SMA...
- which now is slowly turning upwards. Today we pushed away from the 100-sma and made a new high -- stalling at the high (and at QQQ hitting 100-SMA).
We’ve come a long way quickly and we’re extended after this V-type move -- so filling and backing is to be expected. But what is undeniable is the strength to retake the 50-SMA, test it successfully then make a new high. All very bullish. And if we’re right, we should get a plethora of great set-ups in the near future -- don’t chase now, we should get some good entries soon.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned.