The S&P500 is up 2.495% year to date having closed 2016 at 2238.83 > 2294.69.
You should also note the recent breakout to another all time high was accomplished on above average volume. Breadth, RSI and MACD reflect bullish momentum. Price action is above the weekly 9/20ema, having breached resistance.
In addition to these accomplishments, a many of the “weekly” sector charts look like the financials (XLF) below. Therefore, if transports (IYT), materials (XLB), industrials (XLI), technology (XLK) and consumer discretionary (XLY) reflect bullish conditions, it would be reasonable to assume the S&P500 can climb further. Additional commentary on each sector can be viewed in the weekend video newsletter (scroll to the 15:40 mark).
The watch list for the week was discussed in detail, in the weekend video newsletter. (Scroll to 18:47 mark) for additional thoughts. Note comments on JCOM and PLAY that must be met to consider a long entry. AMZN is a scalp only.
What we look for in a bullish setup is exemplified in this chart of WAL.
- RSI is rising
- MACD is crossing, as bullish momentum takes the reins
- Price is above the 9/20ema and accelerating out of a visible pattern
- Volume is increasing, which denotes institutions are involved.
- The stock is in a bullish sector. XLF chart above.
Weekend Video Newsletter for your reference. It is important that you review this video each week, as we put this together for members, so that you are prepared for the week ahead. It is much more expedient to review charts in video format, so that you can make a note of the “entry conditions” on your own charts.
As a side note, we are in the process of redesigning the site, so that everything can be more efficiently located. Think dashboard.
Happy Trading – CV
Disclaimer: Do your Own Research
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