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.

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Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website