The recent rally phase that was confirmed on the 6th is continuing. Today’s strong move back above both short-term key moving averages (aka: positive double cross) on the S&P500 has changed our Current Market Outlook for the better. Only a nasty reversal in the last hour could negate this upgrade. We expect a strong close as it is an option expiration Friday.
Our Current Market Outlook has been upgraded to “Market in an Uptrend” with a green light as of 1pm today with the S&P500 at 3,933.57. Our “Core Four” (see top of page) has improved to 3 green lights and 1 red light. This action in combination with the current low VIX reading has moved the market’s condition back to green.
We hate to be whipsawed, but that occasionally happens in a violent market. Yesterday and today’s action are a perfect example. What’s more important is being on the right side of the most recent change. In yesterday’s post we wrote, “Watch to see if the key indexes can shake off this sharp pullback and mount an impressive rally back up and over their mav’s on a pick up in volume. If they do, that would be an encouraging sign of strength, especially if it happens by the close tomorrow, and that type of action would cause our C.M.O. signal to move back to a technically healthy green condition.” Voila! Today’s market response to yesterday’s weakness is just what the (bullish) doctor ordered.
Game plan: Selectively deploy capital in the strongest areas on your watch list and keep a cautious eye on the 50-day mav’s. Demand that the S&P 500 stays over its 50-day mav as that is what an uptrend does. Remember that earnings season is here.
Note: You can learn more about The Triumphant Core Four risk management system by clicking here.
Have a Triumphant day! ®
The information in this article is based on data obtained from recognized services and sources and is believed to be reliable. Any opinions, projections or recommendations in this report are subject to change without notice and are not intended as individual investment advice. Not to be used as legal or tax advice. ©2023 Triumphant Portfolio Management, LLC.
Where Are Woodward and Bernstein When We Need Them? This article was written by Newt