Yesterday we wrote:
“...Major Pullback2 is losing its selling momentum. If prices can survive August 23, they can survive a lot of dramatic events. So this suggests that Surge7 is around the corner. The Up Trend that started on 12/26/18 is likely to resume soon….Market internals have enough data at this point to send out a definitive bullish message in unison.”
When market internals are all sending out the same bullish message, what it means is this. Under the hood, stocks were primed for buying again, not more selling. All that was needed was a positive catalyst of some sort.
The positive catalyst came in the form of 2 imaginary phone calls from China during the night. It was enough to spark some bullish buying overnight, and a gap up for stocks in the morning.
What you experienced in the last 24 hours was the power of market internals at work. They don’t always agree with each other. But when they are all shouting the same message, it literally pays to sit up and take notice.
The rest of this article covers:
Table of support and resistance levels
Updates from market internals
Planning your trades
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