Never count the Bear out of the picture. Sure, we’re feeling bullish with breakouts succeeding and several accumulation days notched in. But a heavy sell volume day, like Thursday, gives us pause. Not quite enough pause to change our Green Flag buyer’s bias, though more of the same will change us.
The S&P 500 tells us it’s on firm footing while holding above its 50-day moving average. And strong it is after notching in high buy volume for a Follow Through Day last Friday. We’re hanging out the Green Flag for a buyer’s bias. That’s right, go ahead and buy those breakouts from top names. If we’re wrong we’ll haul them in and wait again for another day. That’s the game. Gain a dollar, lose a quarter.
The major indexes appear to be on the Bullish track after noting in a badly needed heavy up-volume day Monday. We’ll expect to see a pause, or perhaps some tease of reversal as they come in to their 50-day moving averages (red line.)
Breakouts of top names are happening.
But what we really need is a strong move of at least 2% up in a major index to really feel better. Without that, we may be looking at short setups.