100% of the major indices I track are trading back above their key shorter-term moving averages.
Here’s the table:
Let's break down what the table shows:
The first column of the table lists several major indices. Each subsequent column represents a different moving average, ranging from the 5-day average to the 200-day average. A green highlight indicates that the index price is above the particular moving average, and a red highlight shows that the index price is below that moving average.
The Takeaway: Last week, I noted that the ongoing weakness in the stock market could result in further declines if the bulls didn't take action quickly. Fortunately, the Bulls did respond and made some progress, as there are now signs that the downtrends at the index level are beginning to reverse on a shorter-term basis.
The way I learnt it was that nothing good happens when the price is below the moving averages.
So, seeing these major indices rise back above their 5-day, 10-day, and 20-day moving averages is an encouraging move for the Bulls, setting the stage for potential further gains.
These kinds of trend improvements could establish a strong foundation for a sustained rally. But they must demonstrate additional strength in the coming weeks to push the market higher to recapture the longer-term trends.
Is this the turning point? Or was last week just a counter-trend rally in the ongoing bear market?
Grant Hawkridge | Chief Aussie Operator, All Star Charts
ICYMI:Kenny Glick went live last week to explain his trading strategy and how he uses it to trade the biggest movers every day.Watch the replay here.
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