This vulnerable market is starting to move to the upside, slowly unfolding our bullish thesis on direction. Earlier in the week we discussed the critical levels that led the market to trend lower where we were able to go short and take advantage of the pops to the downside trendline.
Over the last few days the bulls started pushing the market higher and today we broke through a large inflection point at $4,392 toward the 50 simple moving average (SMA) near $4,434 on the S&P 500 (ES). This is the first step at returning to a bullish market.
If we hold the 50 SMA, that will be the next step toward the “right” (bullish) direction… but remember to stay patient because there is always the possibility of a fast break lower.
Stay Focused!