Market Keeps the Bullish Uptrend Going Strong
Though it may feel weird, the market just simply keeps plowing higher in a triple timeframe bullish uptrend.
Here’s today’s update as price pushes further away from the rising 20 day EMA:
We know that “trends, once established, have greater odds of continuing than of reversing.”
We also know that the S&P 500 (“the market”) shows a bullish rising trend on the Monthly, Weekly, and Daily Chart thus creating a “triple timeframe bullish alignment.”
It should not be surprising that price continues to maintain its upward pathway which is contained roughly within a rising parallel trendline channel.
We look to moving averages – such as the 20 and 50 day EMAs – to give us points to buy shares on pullbacks or aggressively “fade” overbought and over-extended swings in price far away from these levels.
We had our most recent buy signal on the sudden pullback to the rising 20 day EMA on September 25th and that’s all the market gave us.
From there, buyers surged the market higher now six (if today closes positive) days in a row.
Do note the location of price into the upper Bollinger Band and at the upper level of the rising parallel trendline pattern which makes us cautious and expecting another likely pullback away from the highs and back toward the rising 20 day EMA.
That’s your plan but don’t execute it until price actually breaks intraday support and starts heading down toward this target.
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Corey Rosenbloom, CMT
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Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).”