US Market Breaks Out!
The US market staged a decisive move to upside last week with the Dow gaining 2.38% and the S&P500 gaining 2.05%.
As I have mentioned last Thursday, it is extremely important for the S&P500 to rebound off its 1125 level in order to establish it as a support and consequently, new highs. We are happy to see that indeed, the S&P500 did just that and also broke out of its weekly 30MA, completing a reversal with immediate resistance level at about 1175.
With the market in all out bull trend once again, we would be monitoring the quality of the bull trend by observing if the daily 30MA holds for both the Dow and the S&P500. This week is also the first week of October with the ISM index coming up on Friday (see Stock Market Calendar). Whether or not this bullish sentiment gets carried into October strongly could depend heavily on how the ISM index turns out. Needless to say, a positive surprise would certainly point the market towards new highs.
For now, the Dow remains in a short term bull trend, intermediate bull trend within a primary bull trend.
My Market Analysis Sent Straight Into Your Email Daily For Only $5/Month! **My analysis will only be posted here once every other day.
As I have mentioned last Thursday, it is extremely important for the S&P500 to rebound off its 1125 level in order to establish it as a support and consequently, new highs. We are happy to see that indeed, the S&P500 did just that and also broke out of its weekly 30MA, completing a reversal with immediate resistance level at about 1175.
With the market in all out bull trend once again, we would be monitoring the quality of the bull trend by observing if the daily 30MA holds for both the Dow and the S&P500. This week is also the first week of October with the ISM index coming up on Friday (see Stock Market Calendar). Whether or not this bullish sentiment gets carried into October strongly could depend heavily on how the ISM index turns out. Needless to say, a positive surprise would certainly point the market towards new highs.
For now, the Dow remains in a short term bull trend, intermediate bull trend within a primary bull trend.
My Market Analysis Sent Straight Into Your Email Daily For Only $5/Month! **My analysis will only be posted here once every other day.
Chart of Dow Made Using Telechart. Want Your Own Charting Software? Download FREE Now!
posted by Jason Ng at 2:35 PM
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