Breakout, or Fakeout? Don't Turn Your Back on the Market Yet.
No ratings
Welcome to the weekend, friends and fellow traders, and for those of you who are college basketball fans, it's a big weekend indeed. This is the weekend the final four teams left in the tournament are whittled down to one national champion. Personally, I'm rooting for North Carolina, but only because the Tar Heels are the only team I picked that's still alive in my brackets. I didn't see any of the other three making it this far. I mean, Syracuse?
Really? Then again, Syracuse looks about as good as any other team still in contention right now. We'll see.
In any case, while the market didn't end the week on an explosively bullish note, it ended the week on a pretty darn bullish one, in good position to punch through some major resistance lines. In fact, the NASDAQ Composite DID push its way past a key technical ceiling. Maybe April is going to be a winning month after all.
I'll just come out and say it... I'm on the fence here. The undertow is bullish, and as you're about to read, there's a pretty decent technical argument in favor of stocks right now. That, or we're very close to a very good bullish argument. Nevertheless, as I warned a few days ago, the current situation is a tricky one, driven more by psychology and less by fundamentals. Even the technical clues don't mean a whole lot right now, simply because the psychological gamesmanship that tends to manifest every few months has manifested itself now.