Just as I was sure that the floor had dropped out, strength emerged as the S&P 500 closed on highs for the session.
Once again, I think this is a great example of using bad news to create a buying opportunity for the professionals. Here, we are seeing prices driven down by bearish news only to finish on the highs on increased volume. How could everyone be selling if the market closes on highs?
Another factor to look at is the MACD. Here we are seeing bullish indications as the histogram is increasing even while prices were making new relative lows.
Taking a long position on the market might be a good idea on Monday. For the less risky, wait for confirmation and a strong day of 1% or more gain.
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