Happy Weekend, traders!
The bulls pulled a real rabbit out of their hats today!
After yesterday’s ugly bearish engulfing candle, today we gapped up and then proceeded to rally relentlessly all day, the Nasdaq-100 especially. In the process, the bulls not only closed this gap from September, but also closed over it and closed over the mid-October high:
This is extremely bullish if it can be maintained. This was an area that was ripe for either a pullback, or a reversal, and we have gotten neither one. Furthermore, if we look to our old “head & shoulders” neckline, we also closed back above it:
The only way this can be negated
So, the most important indicator in any market is price and until bears show up, they need to show up, everything else be damned!
I hope everyone has a fine weekend.