The market continues to be in grind up mode since we broke above all time high resistance a few weeks ago. The Dow, S&P 500 & Nasdaq all closed Friday at new all time highs. Every single dip has been aggressively bought since October began. The market has been really good to us these past few weeks.
While we could use some digestion in the indices, individual stocks should continue to breakout and give great swing trading action so long as the market continues with this bullish action. The trend is your friend, and the key indice to watch this week is the IWM. The IWM has failed the resistance its testing all year, but with the China-US trade war getting closer to a phase one deal, and after the Federal Reserve has cut interest rates in 3 straight meetings, the macro landscape has certainly changed from the mess we've been dealing with all year. So, is the environment good enough to break through that key $160 resistance level?
We're seeing the market shrug off bad news that, earlier in the year, maybe we would have sold off or seen some more fearful action in the market. The fact we're seeing every dip get bought aggressively means this environment remains quite bullish, until it doesn't.
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