This is a little off topic but I wanted to bring it up. Apparently last week's job report had a lot of people irrationally thinking that the bull market had ended, spreading fear, panic, day to day noise. I just wanted to show the mark of a bull market in my opinion. It's a rising 50 week average in the strongest index - QQQ weekly chart. The flash crash, the Greek riots, all that happened along a rising 50 week average. The last bull market through 2008? Same thing - SPY weekly chart. Well what about the bear markets? It's a declining 50 week average. SPY weekly chart 2008 crash. Just that simple filter of a rising/declining 50 week will let you know if a market environment is changing or not. Even the Russell through it's consolidation last year had a rising 50 week the entire time. Along with monitoring swing points, using multiple time frames, and managing risk appropriately you aren't going to be caught off guard with a bull market just ending over the weekend. Remember this is a 50 week average, not day, not intraday, week. The weekly chart always stays in the back of my mind no matter how short term I get, which is why if I'm looking for short term downside I'll give targets or expectations and looking for upside I don't because that is the state of the market right now. I know most of the readers here know this but for any one that needs perspective on this subject, there it is.
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The S&P and NASDAQ broke above their previous highs at $208.5 and $107 using 30m trends. If nothing else I'll be watching for those trends to carry price to highs and watch how price reacts from there. This should allow for some stock setups to trigger. Russell 2000 is still holding a 130m trend as well as daily trend leading the other indices.
In summary I'm just looking for the indices to carry and trigger some of these stocks to the upside for swing trades. Thanks for reading
-Michael
