Executive Summary:
The good news is the bulls have been able to hold the line at key support levels (think 50-day moving averages) across the board on the major stock market indices. The bad news is the recent rebound hasn't reversed the trend or moved the bulls completely out of harm's way. As such, my take is that the battle lines have been drawn for the two teams to fight over in the weeks ahead. The bottom line is the bulls need a breakout above the 3589 level on a closing basis on the S&P 500 cash index while the bears are hoping for a break down below 3310. And everything in between can be viewed as basically "noise."
The State of the Trend Indicators
While still far from positive, the Trend Board has definitely perked up a bit over the past week. Neutral "hold" signals have replaced the "sells" from a week ago in both the Short-Term Trend and Channel Systems. And while the Intermediate-Term Channel System ticked down to neutral from positive, the board now sports a largely neutral position. From my seat, this means you can hold current long positions until/unless the bears can produce (and hold) a meaningful break below the recent lows.
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About The Trend Board Indicators: The models/indicators on the Trend Board are designed to determine the overall technical health of the current stock market trend in terms of the short- and intermediate-term time frames.
My Take on the State of the Charts...
The "test" of the recent support zones has been successful so far. However, the bulls will want to put some distance between here and the lows (and avoid additional downside testing) as the old saw says that the more a zone is ...
