Bulls Back Out In Force!

The bulls were back out in force Monday as they rallied the cash S&P500 back above the short moving average. Is the pullback off of the 9-13-9 pattern already over? For what its worth, I’m not convinced -- yet. Even a new high doesn’t necessarily mean a return to the bull run -- it may just be a retest.

At this point I am not ready to change my near-term, bearish-leaning position. For one, even another strong rally today would not qualify the TD Supply Line (now at 1077.99). Secondly, the weekly Long moving average still has to be reckoned with (now at 1070.6). Before getting carried away by yesterday’s strength, let’s see what type of technical situation we have if we approach a new high.

Bottom Line: Although certainly not ready to call an end to the bull run from March, I do remain in the bear camp over the near-term, even with Monday‘s strong rally day. At this point it will take a new high to get me to consider turning bullish. 9-13-9 stop at 1084.05; Parabolic SAR at 1078.59. The point where I would say the bull run from March is in trouble is currently at 978.51.