The S&P 500 and other major indices have been crossing the 200-day moving average. Will this be the catalyst for increased buying? Or are we just completing a head and shoulders topping formation with an ominous descending neckline?
There can be no doubt that corporate earnings have been impressive. Even a perma-bear such as myself has restrained myself from adding shorts so far on this move. In fact, a month or so ago, I even purchased a bunch of C at $3.67. It felt right at the time and wasn't really based on any technical studies. It's just that I've been following the markets since the 70s and markets have rhythms, which after awhile, you just feel.
I'd like to short the stocks now but I want to see if some extra upside might kick in. Lots of news coming this week including GDP and Durable Goods on top of earnings. Perhaps finally we will stop being a derivative play of Europe and start acting on our own.