State of the Markets

I am still bullish the US equity markets until early 2013 (perhaps as soon as January). I've purposely left Elliott Wave labeling off the following charts so I don't turn people away who may not trust them. The first chart is the daily SP-500 with two simple moving averages, the 19 and 39. This is basically like putting a macd in the middle of your chart.

Notice there has yet to be a bullish cross, but I suspect prices will come down to the 1392 level to sync these MA's back up before we can proceed with another rise in the SP-500.

My favorite indicator, the ADX. Maybe because I've made so much money just using this for long and short entries. We have NOT received an ADX signal since the buy at 1260. It was getting close to a sell signal when we were up testing 1470, but no. Recently we had a bullish DI cross, but as seen from the chart that tends to whipsaw. Technically, we are still on ADX buy since 1260, so that's bullish.

Stoch RSI became bullish on Monday, November 19th. It will not turn bearish until we drop below the red line on the chart.

My Swing Trend Indicator is still bullish as of today.

With all of this daily information I have to remain bullish at this time. I am looking for a dip to the 1392 area in the SP-500 in the coming week or two, but I think that will be another buying opportunity for now. I try not to look very far into the future because the future is always changing. We need to adapt on a daily basis, thus I look at daily charts. For now they remain bullish.

Peace,

Jim