Why again do I not have the constitution to be a perma-bear?
Dow counts 27805 reasons as it breaks through the EMA 20 and SMA 50.
SPX has taken out the same two moving averages, which we have noted as key to keeping a correction scenario going. It is eyeballing a gap at the resistance of the lost February high. Take that out and then clear the two previous September bounce highs and we can kiss the correction goodbye.
NDX was noted as regaining its leadership position in NFTRH 622, and it has continued with that this week, decisively clearing the EMA 20 and SMA 50.
SOX has remained very firm as well.
The leadership chain shows SOX/NDX still posing constructive, NDX/SPX maintaining its leadership recovery and SOX ticking a new high in relation to the broad market (SPX).
Bottom Line & Notes
If we re-bull we re-bull. In-week so far the bull case is gaining some strength after we used the chart above to note the bullish inkling in #622’s US Stock Market segment.
Side note: The Gold/SPX ratio, all-important to the gold stock sector view, is pulling back but still intact to yesterday’s update.