The bellwether SP500 index (shown below) made important bullish progress today.
First, the SP500 overhead resistance price level at 1130 - 1134 (which was extremely significant in our KRTT view) was taken out to the upside. This is a positive range breakout that KRTT has been correctly anticipating since we turned formally short term (ST) bullish on September 01, 2010.
Besides the range breakout today, the index now has made a highest high since the summer sell-off. Even the biggest bears will now have to acknowledge and deal with a series of higher highs, which always serves as bullish confirmation of a trend.
Overall, North American equity market internals today (both NYSE and TSX) were also very positive, with advancing volume overwhelming the statistics especially on the NYSE. We would however like to see higher volume as many institutions seem to prefer to remain on the sidelines, perhaps in advance of the Bernanke and FED comments about rates and the economy due out later this week.
We have also posted one of the NYSE TICK charts used by KRTT on our paid subscriber site, which they access and learn in detail quite regularly. We use market internals and this type of chart, as well as others to model and predict shorter term trends via technical analysis. Paid subscribers also have access to a the most important data and cycles including our advanced Natural Law theories.
All in all, the bullish trend confirmation and range breakout appears to bode well for for further upside at present.
As usual, we have posted comments in our KRTT mark-up charts (see the exhibits). We will be keeping a close watch on the NYSE internals, and especially the all important SP500 1130 level which needs to be held.
At this point, only a reversal and break below 1130 would turn us more bearish. For now, we remain firmly bullish. Markets are dynamic and new data is accessed daily.
Sincerest regards,
The KRTT TEAM
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