- While the market started the week a bit sloppily, the bulls charged back on Thursday as earnings season officially got underway.
- With the market crossing above significant resistance at the 50-DMA and turning both seasonal “buy signals” confirmed, it appears a push for previous highs is possible.
- Two factors are driving the rebound. First, earnings so far are coming in above estimates. Secondly, bond yields declined.
- Technically,if the current rally is going to push back to all-time highs, the market’sunderlying strength must begin to improve markedly over the next couple ofweeks. If not, the current rally will likely fail sooner than later.
For further details see:
Bulls Regain Control Of The Market As Fed Taper Looms