In last week’s installment, I told you about how we finally got a solid weekly up bar across every major stock index. In fact, I went into detail about the 6% plus bullish action for the Dow, the S&P 500, the Nasdaq, and even the broad market Russell 2000.
In addition, across the board, they all reversed multi-week down bars. And the Dow’s reversal was the most longed-for of all four indexes: It snapped an eight-week collection of weekly down bars.
All in all, the action was a welcome sigh of relief. So, what happened after that? Did we get much follow-through last week?
While we didn’t get another weekly up bar in all four indexes, all four did manage to book higher lows than the prior week.
Is that a good thing? You bet. It means that despite selling, prices held up. It also means that sellers didn’t have to resort to continually lower lows to attract buyers: Buyers were finally willing to pay up for shares. And I don’t have to tell you that change in sentiment was a huge improvement over the constant bearish price action over the last two months.
Are we out of the woods yet? Not by a long shot. In fact, as I mentioned last week, the recent positive action in all four stock markets could just be a temporary bull market rally.
It might also develop into what’s called a “dead cat bounce.” Here’s what I mean: Continue reading "Stocks And Bitcoin Holding Up"
