The market is pushing the next wave of major resistance ahead of tomorrow’s Fed minutes and the devil in the details on what was really said ahead of Ben Bernanke’s comments that rattled the indexes a few weeks ago. The taper talk will heat up once again after the minutes are released and could have a big impact on the market but the bulls are acting like it will be good news either way.
The difference in the test to the 100-day Moving Averages (MA’s) by the bears and the retest of the 50-day MA’s by the bulls is momentum. The bears failed to extend the lows the following session while the bulls cleared, held, and are advancing the flag. The charts from the weekend showed this picture perfect back test to current levels and the dominoes are falling in place for the bulls to make a run at new all-time highs.
Of course, there is always the danger of falling back into the recent trading range as they often tend to get stretched at the top and bottom but the momentum looks good for a continued push higher.
The Dow is up 78 points to 15,303 while the S&P 500 is advancing a 12-pack to 1,652. Ring-a-ling-a-ling. The Nasdaq is gaining 19 points to 3,503. It would be very bullish if these levels hold into the close for Wednesday’s action.
We have a lot to cover inside our Members Area with our current option trades, including a NEW TRADE, so let’s get on it.