After three days of a counter-trend rally, the S&P broke out to some new multi-month highs as a positive durable goods orders report showed broad-based growth. As I mentioned in my last post, this was an important level to hold for the bulls and it looks like they did just that. Those who were short, predicting another top here, were quickly covering their short positions as well, which added fuel to the fire of this rally.
More importantly, a very bullish kicker candle formed on Friday, which is one of the most powerful candlestick signals around. As you can see, Friday's candle gapped up at Thursday's opening price and traded higher for the rest of the day. This signals a dramatic shift in investor sentiment and shows that the bulls have completely taken control of this market. Look for higher prices ahead and this is definitely a good time to be swinging some long positions into the end of the year.
More importantly, a very bullish kicker candle formed on Friday, which is one of the most powerful candlestick signals around. As you can see, Friday's candle gapped up at Thursday's opening price and traded higher for the rest of the day. This signals a dramatic shift in investor sentiment and shows that the bulls have completely taken control of this market. Look for higher prices ahead and this is definitely a good time to be swinging some long positions into the end of the year.
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