The Dow, Nasdaq, and S&P 500 all remain in an uptrend.
In the Dines principle of trend trading you assume continuation of the previous trend until proven otherwise. On sideways days, assume continuation of the previous trend.
You should be slightly less upbeat about the S&P 500 than you did last week.
The uptrend is still intact but it has weakened a little last week. The January 2009 highs are proving to be a killer resistance level. A break above the January highs at about 955 would be very bullish.
The 50 day MA and the 200 day MA continue to come closer and closer together. A Resurrection Cross would be very bullish for the S&P 500. The Nasdaq has already done a Resurrection Cross.
Also the volume continues to fall going into the uptrend. One of two things can happen, either volume begins to pick up on the upside, or the S&P 500 reverses. Currently, volume picking up on the upside is the most likely scenario.
You should feel upbeat about the Nasdaq, even more so than the S&P 500.
Upside leadership continues to come from the Nasdaq.
The 50 day MA crossed above the 200 day MA forming a Resurrection Cross. Also notice how previous resistance turned into support last week.
The upside leadership from the Nasdaq is important in sector rotation theory which states the Technology sector will lead us out of all bear markets.
You should feel slightly less upbeat about the Dow than you did last week.
The uptrend is still intact but it has weakened a little last week.
The Dow continues to lag behind the S&P 500 and the Nasdaq. Also the volume continues to fall going into the uptrend. One of two things can happen, either volume begins to pick up on the upside, or the Dow reverses. Currently, volume picking up on the upside is the most likely scenario.
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