Monday Morning Chartology
The very short term uptrend is clearly the moving force in the Market at the moment. The question is, will the S&P 1422 April trading high provide sufficient resistance to halt this upward move.
There is a lot going on technically if the GLD chart: (1) it remains well within its intermediate term trading range [purple lines], (2) it has been unable to breach the level of the last lower high [orange line], (3) it is building a very short term uptrend, which if it holds will ultimately place it in a developing pennant formation.
The VIX closed below the lower boundary of its intermediate term trading range for the eighth day and did so with sufficient authority that I have to confirm the break of this support level. That suggests that stock prices have further to go to the upside. Nonetheless, principally because of my fundamental bias, I am uneasy with this call. That said, price is truth.
Update on ‘the best stock Market indicator ever’ (short):
The Greek precedent (medium and today’s must read):
This Week’s Data
More thoughts on mistakes the Fed has made (medium):
The price of soybeans and China (short):
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