Markets are still in a clear longer term uptrends and are presumed innocent until proven guilty with the rising 50 day moving averages. This week we had our first closes below a declining 5 day MA for most of the averages which makes the near term trend more uncertain.
Since the beginning of the year, markets have held up above a series of higher lows which have been the basis of our bullish outlook. This week that series of higher lows was violated and it indicates the markets will need to heal a bit before we know if the longer trend can re-exert itself. The video below takes a look at key levels and potential scenarios for the week ahead.