This post is by Tushar Chande from StockCharts.com - Blogs
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This week jittery bulls pushed through a swirl of headlines to loosen the grip bears have on this market. There have been no new lows since my last post on the double bottom, and the bulls managed to push through the down-trend line and some overhead resistance on short-term charts (see Chart 1). Risk-appetite, measured by the HYG ETF, has re-emerged, with the HYG rallying nicely this week. Lastly, market volatility, so essential to the bear case, continued to drift lower. However, the $VIX index remains above its recent lows, fed by a flurry of headlines and we had an outside day to end the week, possibly capping the short-term rebound. So, the bears are happy to lurk in the shadows of political uncertainty, listening to the drums of war.
Chart 1: The broad-based NYSE Composite Index was able to move past the line and briefly break-out above resistance on the 60-minute chart, as the bulls struggled to loosen the grip of the bears.
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