Over the past few days we have been on red alert, awaiting final confirmation that this bear market is over.
Step 1: Break through bear trend (red line) Step 2: Turn that trend line into support Step 3: Golden Cross on 50/200 day SMA
In yesterday’s post I pointed out the dragonfly doji that was forming on top of the trend line and was watching for the price to bounce. This morning I was very happy to see that everything is still moving according to plan.
If we can maintain support above $8,150 and develop a higher low over the next 24- 48 hours then I would consider Step #2 complete.
The 50 day MA has begin to posture up and is rapidly approaching the 200 day MA. Once those cross then all three steps will be checked off and I will be ready to open a leveraged long. In the meantime I am waiting patiently on the sidelines and would advise the same for everyone else.
Happy trading and remember that following is free!