Weekly Charts Reflect Market Positivity

Weekly charts are always good at keeping things simple. The S&P pushed itself out of its tight range with higher volume accumulation on a new 'buy' On-Balance-Volume trigger. We saw something similar in late 2023 that kicked off the next phase of the rally - will history repeat here?

The Nasdaq finished the week on a breakout on higher volume. Nasdaq trading volumes have surged since the latter part or 2024, driven by interest in AI and a double (triple?) test of 2021 highs. Technicals are net bullish.

The Russell 2000 ($IWM) closed above the 50-day MA on higher volume accumulation as it cleared its downward channel. Technicals aren't all quite there yet, but it's working a positive run.

The trade opportunity for the next index to test resistance could be the Dow Jones Industrial Average ($INDU). ADX is still some way from a new 'buy' trigger, but like the S&P, it enjoyed a big gain and is ready to build on this.

For the coming few weeks, keep an eye on the AAII investor sentiment index. The inflection point I previously highlighted passed without the downward swing I was expecting. Instead, it came with a resistance price breakout. Sentiment is still "inflecting", but the kick off for a new bull market looks to be well on the cards.

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Investments are held in a pension fund on a buy-and-hold strategy.

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