Thursday, June 30, 2011
Test of the 200s
The correction from May 2nd has successfully tested the 200 day moving averages of several key indexes. This is a bullish indication, especially considering that the diagonal trend lines from the peaks have either been broken to the upside or are at these trend lines. However, the swing-pivot points of the decline have yet to be taken out.
A break above the pivot points would further strengthen the bullish case, while a downside violation of the June 16th low (March low + 90 degrees) would be a disastrous scenario for the bull market.