Phil’s Stock world, dshort.com and this blog (see post here) all highlighted the fact that the broad market (NYSE) and numerous other markets were on SUPPORT, prior to yesterdays rally.
Over the past year, the NYSE has created some key Bullish downside wicks at short-term market lows. Two days ago a downside wick took place at channel support.
CLICK ON CHART TO ENLARGE
The large bullish wick that took place at support line (1) should be respected for its bullish potential! A breakout above resistance at (2) for this broad market index would be sending a signal that higher prices are to come! Keep in mind the “Shoe Box” indicator has not given a sell signal as of yet (see post here)
Game Plan…This is a great place to pick up this index with a stop just below channel support!
Go Small caps!
Dear Chris,
Thanks for your great post, looks like a good moment to give it a shot. BTW, what is your proxy for the NYSE Index, the NYC ETF? It’s not traded very much, any other ideas? Thanks so much for your excellent blog.
Cheers, spjuliman