Wednesday, March 21, 2007
S&P's and Spiders
Here are hourly charts of the June S&P futures and the Spiders. I last commented on these markets here.
The Fed took no action this afternoon and the markets raced upwards in reponse. I think this is a bullish development because only a strong, underlying technical condition would push the stock market up like this without some obvious postitive development as an excuse.
I have have highlighted the previous hour's trading activity in green. It is a wide range up bar which represents a decisive move upward out of the past two week's trading range. I think we shall see a close above the high of this range today and I think this will mean that new bull market highs lie dead ahead.