Bullish or Bearish? Week of May 13, 2024

Short-term trend (DAILY CHART)   BULLISH: Last week, SPX rose from 5127 to 5222, a very strong 95-point rally. SPX blew past its moving averages and is on a roll once again as it comes close to its all-time high. Note: Futures are FLAT on Monday morning.

Long-term trend (WEEKLY CHART) – BULLISH: On the weekly chart, SPX is above all three moving averages and is near its all-time high.

MACD (DAILY) = BULLISH: MACD is above the 9-day signal line and is about to break above the zero line.

RSI: (S&P 500) = 62.00 (DAILY) SLIGHTLY OVERBOUGHT: RSI is slightly overbought but not at extreme levels, so this market has room to move even higher.

Comment: SPX and the other indexes exploded higher last week, breaking through resistance and putting the bulls in the winner's circle. For the Dow, it was the best week of the year, and its 8th consecutive winning session.

Although several market professionals are warning of a reversal this summer, for now the bulls are in full control. The correction of a month ago is in the rear-view mirror.

Apple initiated a massive stock buyback program last week ($110 billion!), which many claim spurred the market higher. I don't spend a lot of time thinking of the "why's," only the "what's." With that in mind, the market is moving higher and broke above resistance.

Bottom line: The market already surpassed 5200 and is headed much higher unless something gets in its way.