Two days ago I showed that the current price action and Friday’s “correction” was different from all those corrections we’ve seen prior. The noticeable differences were:
- MACD buy-signal now vs sell-signal “normally” (between ” ” because there is no real “normal” in the market”
- daily SAR in uptrend vs in downtrend “normally”
- price inside bollinger bands vs along the lower BB “normally”
Though this was for the S&P500, the NASDAQ (COMPQ) showed the same then. And now. Interestingly, it came with 1p of its high made mid-March. A feat that seemed to have gone quietly unnoticed and bearishness remains rampant somehow. One would think we’d all be bullish up here. Instead many are still wanting the market to pullback hard to load up the truck. Often such wishes are not granted by the market. So what do we have now? See chart below. It follows that:
- COMPQ has managed to quietly crawl above the daily R1 level. If it can maintain that, then the R2 is next.
- The daily BBs are starting to expand. This is bullish and means price has strength, adding to the first bullet
- The daily MACD remains in a buy
- Price found support at the daily P-level last Friday, which coincided with the 50d SMA and has since managed to even claw above the 20d SMA. As long as price remains above these two SMA even the short-term trend remains up.
- The PMO remains in a buy and pointing up, as do the FSTO and RSI(5)
Hence, we at I.I. remain bullish and keep on looking up as simple all TIs are in a bullish mode. Simple as that. Once this week is in the books we can take a look at the weekly chart, and determine how bullish or bearish that one is. For now it looks very bullish! But, we need 2 more days for that, and anything could happen. For now the daily chart suggest more upside and that’s all we need for now.