Triggered by news of Moderna’s positive vaccine news release, markets appear to suddenly have hope and became extremely bullish, with the bearish bias literally disappearing almost immediately. A quick look here shows the new picture…
The S&P500 futures clocked the most bullish day of the month. It is now about to challenge the upper resistance of the range, with support of MACD turning up. Given the solid bullish candlestick, it appears that the resistance is likely to be broken and aiming for the secondary resistance level of 3100, over the next two to three weeks.
Quick check with our leading indicators show a huge gap up over and above the resistance lines. High yield bonds ETF, JNK, is clearly leading bullish, Russell2000 ETF, IWM, DJ Transports and Value Line cancelled the Sell signal,
This is probably not a time to be stubborn, Mr Market has said he is bullish, regardless of the reasons. The next two days should see a continuation, and with a new recent high, then aim for a turn in June.
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