Nasdaq, S&P 500, and Dow Looking Bullish For Next Week
As predicted last weekend, the Dow, Nasdaq, and S&P 500 all have continued their uptrend last week.
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 feeling upbeat about the S&P 500 going into next week.
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.
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. We also now have confirmation (at least 3 days) of the Resurrection Cross.
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 upbeat about the Dow going into next 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.
