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Taking all this important information into consideration then, let's go ahead and maintain our bullish stance of the last couple of weeks as ride the path of least resistance, while at the same time, looking for reasons why this same stance is no longer appropriate.
It was a bit of a mixed week for equities as the major market indices wound up with a average gain of .70%, week over week, with the broad based New York Composite Index leading the way higher with a gain of 1.50%, while the NASDAQ Composite Index was the weak link in the bullish chain coming in with a loss of .65%. Looking over our breadth charts array for this week shows very little in the way of analytical changes from the last two weeks as cumulative money flows continue to rise nicely though the Investment Grade Bond and NYSE REIT advance/decline lines did show a small break in their accelerated rising trendlines. However, with the BETS improving nicely to a +40 reading, and the Junk Bond advance/decline line showing continued strength, the short term expectation is for continued strength in stock prices for the next several weeks regardless of what might be in the FED Statement coming next Wednesday. Because of this, let's continue to maintain our bullish posture for now as long as liquidity levels remain ample enough to absorb any bearish ambushes, while watching sector rotation closely as money seeks out areas of undervaluation as the advancing price sequence continues. Have a great trading week! US Equity Markets : US Interest Rates : US Real Estate : Precious Metals: Australia: England: France: Germany: India: __________________ Dave's LinkedIn Profile Technical Watch Twitter Page Technical Watch Facebook Page "As for it being different this time, it is different every time. The question is in what way, and to what extent" - Tom McClellan "An economist is someone who sees something happen, and then wonders if it would work in theory" - Ronald Reagan "What we see depends mainly on what we look for" - John Lubbock "The eye sees only what the mind is ready to comprehend" - Henri Bergson “Answers are easy; it’s asking the right questions which is hard” - Dr. Who - 1977 "You know the very powerful and the very stupid have one thing in common - they don't alter their views to fit the facts, they alter the facts to fit their views (which can be uncomfortable if you happen to be one of the facts that needs altering)" - Dr. Who - 1977