Setting the Stage for the Next Leg Up
There seems to be little (if any) recognition of the bullish price structures we are currently seeing in the equity market. Most analysis seems focused on the how the current rally will come to an end. We're not hearing a lot of speculation about potential upside and the vertical extension of equity prices. When we step back and look at the long-term price structures in the equity market, we see a bull market unfolding in an orderly manner and setting up for another leg to the upside.
The equal-weighted S&P 500 is back testing the 2007 highs and shows the equity market at a key inflection point in the weekly chart. A confirmed breakout over the 2007 highs in this index would make it tough to deny the bullish nature of the equity market and traders would have to start considering the possibility of a secular change taking hold. It may be a bit early to talk about secular changes, but the cyclical condition remains bullish and offensive in nature....597 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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