Is The Rally For Real?

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The 60 minute S&P 500 chart above shows that we have broken the downtrend that has plagued us since the start of May. This last week the downtrend line has acted as support which is a good sign for the bulls. I expect us to continue to rally throughout the week.  I have circled on the chart with some strong resistance which the futures on this Sunday night have blasted through. If we continue this week breaking 1334 convincingly, then we have to test 1358 which is the middle bollinger band on the weekly chart shown below. At 1358 we will either pause this rally or reverse, if neither of these scenarios play out expect us to retest April's highs.

Enlarged $SPX Weekly Stock Chart

The most bullish indicator I have at the moment is the McClellan Oscillator, which is a short term indicator that works very differently than other momentum indicators. Right now it is showing positive divergence by not making a lower low this past week, which is very important because the oscillator rarely ever gives off false signals nor does it say much but when it does you better listen. Take a look at the annotations I wrote on the chart you will notice how powerful it can be. More on McClellan Oscillator.

Enlarged McCellan Oscillator Stock Chart

Also check out:
Daily S&P 500 chart with resistance and support lines updated daily.
FIO Looks like it is Bottoming