Dr Alexander Elder
This Wednesday, the market opened flat, near the level of Tuesday’s close. It gave us a slow but steady rally, closing near the high of the day. Let’s look at our charts…
The New Highs continued to expand, the New Lows to shrink. Our New High – New Low Index continued to rise in all for windows that we track. Notice the pattern of higher highs of NHNL, marked by green arrows; it confirms that bulls are in control.
This bull market began in April, when we had our Spike signal. It has been progressing in an orderly manner, not becoming very overbought but periodically reducing bullish pressure by brief pullbacks. The two most recent ones are marked here as PV (pullback to value).
There are two ways to trade a bull market: momentum or value. Momentum means: buy high, aim to sell even higher. I prefer Value buying: wait to buy on pullbacks to the value zone, marked by a pair of moving averages.
Best wishes for the rest of this trading week.