Every week I feel the market has peaked. And every week it goes a little bit higher. The trend is consciously up, and the market is trying to work through the strong upside resistance at 5400. The weekly graph shows serious volume, and an MACD line that wants to go above zero. (the MACD Line above zero is a bullish indicator)
With the resistance at 5400 – because of earlier stops around here, there will be some back and forth. But every single day you watch bears get slaughtered with strong intraday moves up just when the market attempts to go lower. This is not a sign that there is no selling – but that the sellers are buying back almost immediately because they’re getting so badly burnt.
When the last bear disappears, this rally is over. The sentiment remains negative, so we’re unlikely to break down too much. (Disclaimer: Long – and using long dated puts for shorts)
