Two weeks ago, we thought markets might be a bit oversold and due for a bounce. The moving averages have held, and the bulls took the advantage.
The S&P has since rallied 3% in two weeks. The S&P closed the week at 2801.
While we are still stuck in our 2550-2800 range, we have finally gotten back to the upper level of that range at 2800 – a level we have not seen since March. While equity markets are a touch overbought here, the series of higher lows put in since March give the edge to the bulls.
We are anxious to see if the bulls can break free of this trading range that we have been in for the past 7 months. An upside breakout of this range could lead to an assault on 3000.
Investing is boring, not sexy. We are not calling market moves or breakouts. We are contingency planners. Read more from seekingalpha.com…
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