Saturday, September 6, 2014

Bears Get Punked Dirty Harry Style

The stock market began the week with a whimper that threatened to crescendo into an all out screaming "SELL!!!" by Friday morning.

The S&P 500 (http://scharts.co/TUsKvn) printed three successive distribution days as the bears threatened to take the market down once again.  Friday morning's price action all but ensured the market would end the week poorly and possibly begin a new down trend.

And then the sellers left the building.

The end of week action points to the Nasdaq-100 (http://scharts.co/TUs5tW) and the Russell 2000 (http://scharts.co/TUtsZE) as the leading indices.  Both indices showed very little distribution during the week and both ended Friday with accumulation days.  The Market Trend Model (http://bitly.com/M_Trend_Model) confirms the recent price action as it continues to show a positive bias.

The words of Inspector Harold Francis Callahan seem more than appropriate for the perma-bears and top callers, "You've gotta ask yourself a question: 'Do I feel lucky?' Well, do ya, punk?"