I will be keeping this post short dear readers as its Friday and I will be doing a more detailed analysis of the markets this weekend. Yesterday, I noted that the best the bulls could hope for over here is a period of consolidation. And that's exactly what happened today. Let's have a look at the 1 min S&P chart for today.
The market consolidated for most of the day, in the form of an ascending triangle, before moving higher in the last hour. Encouragingly for the bulls, the market closed close to its highs of the day.
Let's just step back a little more and have a look at the 15 minute chart.
It has a been a most impressive rally by the bulls this week but what I like the most about this rally is that though the markets have been up for four consecutive days now, the rally has been built on multiple stages of consolidation (marked on the chart). And that to me, has been the strength of this rally. A move straight up would have had a greater chance of failing. Looking at this chart, it is clear that 1085 is the next major resistance for the bulls and would be the level to watch out for early next week.
I will be back with a more detailed analysis as well as some stocks for the watchlist during the course of the weekend.
Have a great weekend!