Monday’s Importance to the Bulls

• Posted by Greg Harmon
• on April 29th, 2014

The S&P 500 ($SPY) has been holding up the best of the Indexes, and it is basically moving sideways on a longer scale. No real excitement there. But for both the doom and gloom crowd and the bullish crowd, Monday may have been a significant day in the short run. And all it takes is the most basic old school form of technical analysis. We won’t know until after the fact, a day or so, but Monday just might have been a higher low following a higher high. A trend change. The chart of SPY below shows it clearly.

But it was also present in the $DIA, $QQQ (below) and $IWM. Will this be the start of a turn around? We will have to wait to see but on a short term basis a high high and a higher low signals a trend change. Don’t ignore it. If it holds up and continues then everyone will be pointing to the Fed Meeting, but you will know better. If it fails then it is back to proper risk management.

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