Coolhand's Market Analysis

Originally Posted by coolhand

The bulls started out the week with a big rally. The action was decisively bullish.




Price on the S&P 500 closed above the 50 dma once again, but what is more bullish is price on the DWCPF, which soared and is not far from testing its all-time high. Also, price has been above the 50 dma for several trading days, which is bullish.



Breadth, which was already bullish, shot higher and is looking very bullish.

It's beginning to look obvious that this market may be stronger than it has appeared. Even the smart money has been caught (to some extent) on the wrong side of the market.

I myself have been neutral of late, but have also acknowledged that there were bullish signs. I am now moving to a modestly bullish stance. I want to see the S&P 500 hold price above the 50 dma and I'd like to see price push past the previous high on the DWCPF. If today's rally was more than just a 1-day pop, this could be a big week for the bulls. We'll see how it goes.