The pros watch the S&P 500 for hints as to the market direction. The pros feel the D-J Industrials offer too small or too limited a guide as to the direction of the entire stock market.
I include below a daily chart of the S&P 500 Composite. In June the Composite gapped up and above its 50-day Moving average. It was already above its 200-day MA. Meanwhile, MACD at the bottom of the chart was looking better and better, as was RSI. Of course, RSI has not been not been fully oversold since last June.
Overall, I would say that the S&P Composite looks bullish, and if that is true, it should rub off on the D-J Averages, in which case we should see the two D-J Averages rally and close above their May peaks.
Maybe it all sounds too simple and logical; now all we have to do is wait for ... Log in or subscribe to continue reading.
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