Wednesday, May 18, 2011

All Major Indices Are Back Testing Their 13D EMA's

SGS is Long (as of close of 4/1/2011)
RTS 20110404 Long Portfolio (Bench Mark)

My LT Portfolio
My IT Portfolio
My ST Portfolio

Today's rally was impressive for the following reasons:
  • The rally was steady and evenly paced indicating that side money is scaling in.
  • Market breadth was fantastic for both NAZ and NSYE.
  • There was very little panic buying that usually accompanies short covering rallies in a bear market. 
All five major indices closed just below their 13D EMA's.  A close above that moving average (probably tomorrow) would be bullish, signaling that the correction is done.  I think chances are excellent now for indices rally to test their recent multiyear highs.

Disclaimer: The views expressed are provided for information purposes only and should not be construed in any way as investment advice or recommendation.  Furthermore, the opinions expressed may change without notice.