Is The Stock Market Starting A New Bull Market Rally? (Technical Analysis)

Jonathan Kitchen

It has been a while since I person written a elemental method study article. My attraction has been connected helping thatch others really nan markets move and to waste and acquisition and put differently, truthful I apologize for nan deficiency of floor plan study complete nan past respective months.

With that said, nan marketplace could beryllium starting thing large and exciting, which brings caller opportunities, and, eventually, immoderate monolithic consequence for investors. I screen my outlook successful overmuch greater extent successful this surface stock video I did pinch Craig Hemke.

As an progressive trader relying solely connected method study and consequence and position management, nan caller rebound successful awesome banal indexes is an encouraging sign. The past period had been anemic and was starting to spook mean marketplace participants.

We watched nan masses panic retired of positions past week and bought put options, betting heavy for a illness connected Thursday and Friday, but nan other happened, arsenic expected. I consciousness bad for these suckers who waste and acquisition purely connected affectional impulse. They return beating aft beating until they springiness successful and determine to study really nan markets move and negociate positions and consequence aliases springiness up connected trading.

Anyways, onward and upward!

Buyers person stepped successful and are supporting prices, and these rebounds are occurring astatine important moving mean lines. I’m paying adjacent attraction to nan 200-day moving mean lines connected nan awesome indexes.

This is important because nary matter really bully of a trader you are, if you don’t cognize short-term and semipermanent trends of nan wide banal market, your likelihood of consistently winning trades and increasing your relationship driblet to astir 30%. With that said, let’s jump into immoderate charts!

Dow Industrials Daily Chart

Looking astatine nan Dow Industrials Chart, it’s bounced disconnected imaginable support on its precocious December debased and its 200-day moving average. This is simply a affirmative sign, arsenic it keeps nan sideways trading scope intact.

It’s besides to support successful mind that nan longer a floor plan trades sideways, nan larger nan adjacent breakout should be. This three-month region could battalion a powerful punch/rally if nan marketplace continues this move.

S&P 500 Daily Chart

The S&P 500 looks to person recovered support and started a reversal from its 200-day statement connected Thursday and gained much crushed connected Friday.

Nasdaq 100 QQQ Daily Chart

The Invesco QQQ ETF has besides bounced disconnected its 200-day average, indicating that there’s beardown support astatine this level.

Small Cap IWM Daily Chart

As a technical trader, I’m ever looking for signs of spot and weakness successful nan market, and small-cap stocks person been opinionated retired arsenic a peculiarly beardown area of nan marketplace successful caller months. Despite nan wide weakness successful nan markets successful February, small-cap stocks person held up amended than their larger counterparts, which is simply a promising sign.

I tin spot that nan Russell 2000 iShares is good supra its 200-day moving average, which is an important level of support. This indicates that there’s still a beardown bullish sentiment successful nan small-cap space.

ARKW Daily Chart (Momentum & Growth Stocks)

It’s worthy noting that small-cap and maturation banal activity is typically a affirmative motion for nan broader market, arsenic these stocks thin to lead nan measurement during marketplace rallies. As a method trader, I’m encouraged by nan spot of these stocks and will proceed to show this marketplace area for imaginable trading opportunities closely. I besides consciousness that gold, silver, and miners could travel backmost to life.

Earlier successful February, subscribers and I locked successful gains pinch ARKW astatine 7% and 15% gains. We besides locked successful 7% successful SMH and 10% pinch QLD. Another large rally successful these types of stocks could beryllium starting erstwhile more, which I scheme to return advantage of utilizing my Best Asset Now (BAN) ETF strategy.

Concluding Thoughts

In short, past week, nan marketplace whitethorn person turned a awesome area that could past a fewer months. I consciousness it will drawback a ton of traders disconnected guard, and then, erstwhile this move is complete, nan pursuing move will destruct astir investors’ accounts and status dreams, but we tin talk astir that different time. It’s a small measurement distant still.

Overall, nan marketplace remains successful what I telephone a Stage 3 topping phase, and nan cardinal is to protect our superior and not beryllium swinging for nan fences until nan adjacent tradable shape starts, which would beryllium Stage 2 aliases Stage 4.

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Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.

I americium an internationally recognized marketplace method expert and trader since 1997. My BAN (Best Asset Now) trading strategy thumps nan #SPX by 600%. Through www.TheTechnicalTraders.com/ my ngo is to thief clients boost their finance capacity while reducing consequence vulnerability and portfolio volatility. Through years of research, trading and helping thousands of individual traders and investors astir nan world I designed an automated algorithmic trading strategy indicators for nan S&P 500 scale which solves investor’s biggest problem related to nan banal marketplace - nan expertise to profit successful some a rising and falling market. My attraction is to amended individuals connected really to swing-trade indexes, stocks, ETF's, precious metals, and energy.