📈 State of the Stock Market

Where are we headed?

Index Review

Yesterday the indexes formed bullish candles, giving us near dragonfly dojis on both the SPY and QQQ.

Will the momentum continue? Let’s look at some charts to see where we are.

S&P Futures

S&P Futures have been in an uptrend for the past week now and my private indicator is now showing green clouds which is a good sign.

However note from the image below that we are approaching resistance which may not be easy to break through, especially with such important economic data, such as the Fed Interest Rate decision, coming later in the week.

Stocks Above 20 Day Moving Average

I often look at this chart to see the percent of stocks above the 20 day moving average. You can see that we bounced off the 11% level that is often support and have been moving up since.

Do we continue moving up? I can’t say. However it is clear that this chart can help us understand when we are likely to see a bounce.

Stocks Above 5 Day Moving Average

On a shorter timeframe we can see the bounce in stocks above the 5 day moving average.

We went from the low end of the range to the high end of the range in a matter of days and are now sitting in between.

Watch this chart to see which direction we are moving because we often test the highs/lows.

I run through more market internals and how I am positioning myself for the economic data later this week in the video below: