Bullish Percents sing from the same hymn sheet
Bulls got another endorsement with all three Bullish Percents generating bullish crosses of their 5-day EMAs. The last of the Bullish Percents to turn was the Dow:
What is clear is the distance to resistance; as an upside target I wouldn't look past this resistance until the volume accompanying the next rally is known. Monday's sell off didn't violate support but the nicked breakout of the pennant pattern of the S&P failed which places a question mark over the pattern broadening into a double bottom. The Dow and Nasdaq remain on course to create a double bottom.
HeadlineCharts published an excellent chart showing the relationship between treasury yields, commodities and the S&P; this is playing to form. I drew a 4-year cycle chart of the relationship below with the textbook gaps between tops for each sector:
Look for yields to rise first, then the stock market, then commodity prices.
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website
What is clear is the distance to resistance; as an upside target I wouldn't look past this resistance until the volume accompanying the next rally is known. Monday's sell off didn't violate support but the nicked breakout of the pennant pattern of the S&P failed which places a question mark over the pattern broadening into a double bottom. The Dow and Nasdaq remain on course to create a double bottom.
HeadlineCharts published an excellent chart showing the relationship between treasury yields, commodities and the S&P; this is playing to form. I drew a 4-year cycle chart of the relationship below with the textbook gaps between tops for each sector:
Look for yields to rise first, then the stock market, then commodity prices.
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website
