Only Price Pays! I repeat that phrase all the time because I constantly see comments on stocktwits, email, etc that tell me why the current market action doesnt make sense. The past couple of weeks I have been hearing that the markets had topped and a correction is imminent.
The theme I have emphasized throughout this rally is that it was “innocent until proven guilty.” Meaning that the trend should be given the benefit of the doubt as long as key levels (clearly outlined) continue to hold as support. This past week the $SPY held its key level of 148.50-149.00, the $IWM held its key level os support at 89.00, the $QQQ held its key level as did the $SMH and the $XLF.
The market remains in an uptrend and as long as the pattern of higher highs and higher lows continues to hold on the timeframe that you engage the market on, then you should give the benefit of doubt to the buyers. The emphasis of the levels in the video below is meant for short to intermediate term (1-4 weeks) trends but the larger trends are always considered. I hope it is worthwhile, if so, share it with others via twitter, google+, linkedin etc. and consider a subscription for the analysis and a live chat room every market day.