Home > Financial Ponzi, investing, Stock Market, technical analysis > Are Bulls ready to break through?

Are Bulls ready to break through?

Boy, it sure looks like it… though that is often the case at unexpected inflection points.

The S&P is battling with trendline resistance dating back to the 2007 top.

The QQQ of Nasdaq is battling similar long term resistance.

But there are some ratios pointing to a Bull run that could have a long way to go.  After years of relatively weak performance, the Financials (XLF) may finally be perking up as they threaten to break above trendline resistance.

Also, Emerging markets (EEM) have broken above trendline resistance in a chart of relative performance versus SPY.

And small caps (IWM) have also started outperforming SPY.

The ratio of consumer discretionary versus consumer staples, an interesting gauge of risk appetite, is also skewing towards risk-on.

So while the significant resistance faced by the S&P and Nasdaq may suggest extreme bearishness is in order (as may the flood of newly bullish sentiment), many market internal ratios are suggesting that bullishness to be well justified.

  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: