Are Stock Bears Ready for a New Attack?

The daily S&P 500 (SPX) chart courtesy of Trading View illustrates  considerable bullish evidence.

The SPX has broken above a declining daily trend line.

Daily MACD – Histogram has crossed the zero line.

MACD lines have a bullish crossover.

Daily RSI and Stochastics  have bullish lines  crossovers after having bullish divergences.

On the bearish side of the coin, after the prior two – three -day rallies,  bears  launched vicious attacks.   

Could the bears begin a new drop that wipes out the recent rally?  We may have the answer in a  few trading  days. 

Traders are holding  50% long positions on non-leveraged SPX funds. Continue holding long with a stop loss on a move below SPX 3795.00. 

Published by Mark Rivest

Independent investment advisor, trader, and writer. Articles have appeared on Technical Analysis of Stocks and Commodities , Traders.com Advantage, Futuresmag.com, and Finance Magnates.

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