As predicted last weekend, the Dow, Nasdaq, and S&P 500 all had a good 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.

S&P 500

Overall, you should be feeling upbeat about the S&P 500 going into next week.

The dangerous Descending Triangle like pattern that was forming last week did not result in a downward breakout. The pattern is now null and void.

The break above the 200 day MA line and the $930 to $931 resistance is bullish and is following in the path the Nasdaq took last week.

Nasdaq

Overall, 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 although we would like confirmation of at least severals days of the Resurrection Cross.

The break above May’s resistance of $70.22 is bullish.

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.

Dow

Overall, you should feel upbeat about the Dow going into next week.

However, caution is recommended as the Dow has been lagging 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.

The break above May’s high of $8587 is bullish.

Technorati Tags: bear markets, breakout, confirmation, continuation, descending triangle, dines principle of trend trading, dow, leadership, major indices, nasdaq, principle, resistance, resurrection, sector rotation, technology sector, trend trading, uptrend

Related Articles:

1. Bullish Forecast For Next Week Of the Major Indices The Dow, Nasdaq, and S&P 500 all had a strong week. In the Dines principle of trend trading you assume...
2. 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...
3. Dow and S&P 500 In Weak Uptrend, Nasdaq In Strong Uptrend For Next Week The Dow, Nasdaq, and S&P 500 all remain in an uptrend. In the Dines principle of trend trading you assume...
4. NASDAQ Running On Thin Air Shocker! Of the three major indexes–DOW, NASDAQ and the S&P 500, only the NASDAQ is running on thin air. What do...
5. Why The Nasdaq NYSE 10 Week Moving Average Is Still the Best Trading System Ever December 22nd, 2009 Update: 25% NET Profit a year for the last 30 years! Nasdaq/NYSE 10 Week MA Strategy Indisputably...