Technically, there are a number of “golden crosses”, where the 50 day moving average crosses above the 200 day moving average which is seen as very bullish. In particular, the S&P 500 has crossed above its 200 day moving average. In fact, all the indexes we track have achieved this milestone except the DJIA. A number of changes are being made to the DOW, with AIG, C, GE, and GM being removed and replaced with other companies. In addition, many economic reports are coming in better than expected and the bankruptcy of GM seems to be already priced into the market. It appears the global credit crisis is over and the global recession is showing signs of recovery.
Futures this morning are flat and the DAX is positive, indicating a flat to positive open. The market condition scans are positive, but the market bias indicators show that we are ready for a statistical pullback.
| Index | Change | %Change | Level | Phase |
| TSX | +233.99 | +2.26% | 10604.06 | Bullish |
| DJIA | +221.11 | +2.60% | 8721.44 | Recovery |
| Nasdaq | +54.35 | +3.06% | 1828.68 | Bullish |
| SP 500 | +23.73 | +2.58% | 942.87 | Accumulation |
| Russell 2000 | +19.75 | +3.94% | 521.33 | Accumulation |
| NYSE | +165 | +2.75% | 6169.07 | Accumulation |
Source: Telechart
Short Term market outlook:
Bias: Scans showing a neutral bias
Energy: moderate to weak
Primary Trend: Remains down to sideways
| Sector | Phase |
| Consumer Staples | Recovery |
| Healthcare | Recovery |
| Technology | Bullish |
| Utilities | Recovery |
| Energy | Accumulation |
| Financials | Recovery |
| Industrials | Recovery |
| Materials | Recovery |
| Consumer Discretionary | Recovery |
Source: Telechart
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