Bulls Looking For Support

Since Thursday I have presented an overview of the new longer-term charts. To recap: The quarterly chart indicates that the bear market rally from March is maturing and that long-term investors should not yet be worried that they have “missed the bottom“. Although I can’t claim that the maturing rally from the March low is complete, the monthly chart shows that the forty point area between 978 and 1020 is the current ground the bulls must hold.

We have declined to the top of that area (low of 1019.95 on Friday) and the weekly chart shows two salient points for this coming week. First, the TD Demand Line will not be qualified if broken. Second, the Short Moving Average will be at about 1014. These two features should provide support early in the week. Note that these two features on the weekly chart coincide with the TDST support line and gap on the daily chart at the 1016-1019 level.

If the bullish camp can hold that support it will then be imperative for them to move this market back above resistance … on the weekly chart that is at about 1066-1071. The daily chart shows the Medium moving average at about 1037 today and a resistance zone at 1054-1059.

Bottom Line: Even if a rally were to develop over the coming week I will remain in the bear camp over the near-term since at this point it will take a new high to get me to consider turning bullish. The point where I would say the bull run from March is in trouble is currently at 978.51.