by Michael Keane
In the last couple of weeks, the market has been moving forward in an upward motion. Upon initial observance, skepticism was alive and well. But after this week's movement, the idea of a longer term uptrend may be upon us. This analysis has been strongly technically based.
A resistance level on the S&P ETF (symbol SPY) was expected to be $200. A resistance level for IWM was expected to be $105.00. This was based on a short term W formation being formed.
But both these levels were breached. After doing some further research technically, a large bullish doji candle was found in the SPY for February at the monthly level. This has now been followed by a strong bullish candle this month. The same pattern can be found in the IWM. Further, the weekly charts show a strong move through the 200 MA for IWM and the 20 MA for SPY.
To be sure, volatility is very high in this market and a new perception can show up quickly. Earnings are upon us and it is an election cycle that does not seem to be in need of headlines. But another up leg looks likely.
** A chart from Greg Harmon @harmongreg on Stocktwits assisted in the analysis**
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