Can the Bulls Follow Through on Friday’s Gains?
Or was this just an Opex move?
Follow @MrTopStep and @BretKenwell on Twitter and please share if you find our work valuable.
Our View
Did the bulls turn a corner or was this an Opex-fueled rally designed to mislead a majority of market participants?
I want to know, how do you feel about the current conditions of the market? There is no right or wrong answer, I am truly just curious how this group feels about the next several weeks.
It seems to me that many investors have turned more optimistic over the last few days.
As for the week, if it weren’t for earnings, it would be a quiet week. The Fed has entered its blackout period until the FOMC meeting on Feb. 1, so we won’t be hearing from them. On the economic front, just a few events stand out this week: The PMI report tomorrow, the GDP report on Wednesday and the PCE report on Thursday.
In regards to earnings, there are a lot, including: JNJ, GE, MSFT, BA, TSLA, INTC, V, MA, AXP and CVX.
Our Lean
As for the DAX, it found support and our upside levels were: 15,000, 15,075, 15,130 and 15,150.
Well, the high today is 15,146, so three out of our four targets have been hit. If you’ve ridden this one, then congrats. Consider raising your stop on the last piece up to 15,000. Otherwise, let’s see if we can get the last target on it.
How nicely did Friday play out for us? The S&P rallied right off the open, then slipped up and it took almost two hours to take out the high. But then it was off to the races as the market gave bulls a beautiful Opex “FRY-day.”
As for today, the ES held up well through Globex and is now pushing higher. After a big up-day, Mr. Top Step has a rule that the market usually tends to go sideways to lower.
Our Lean: