Saturday, June 28, 2014

Positive Price Bias Prevails

The Nasdaq and the Russell 2000 led stocks higher last week while the S&P 500 held tight in a very narrow range.   The Market Trend Model continues to show a positive price bias for stocks as sellers remain notably absent.

Media pundits continue to raise the red flag and warn of the coming correction.  At some point in time the bears will be correct (even a broken clock is right twice a day), but their guesses at a market top are just that, guesses.

Trend followers know the only true indication of where the market is going is the price action of the market itself.