In order to see where the Stock Market may go next, I like to step back and look at a Longer-Term View by using Monthly Charts:
1 – using some Moving Averages (14/18), you can judge the overall Strength of the current Market by seeing Price relationship with a Historical perspective . . . although she has climbed back Up quite a ways, the Market is only now back to some kind of levels of normality as judged by the 14-month moving average.
The S&P-500 would need to keep on chugging upwards and past the 18-month moving average in order to truly be Bullish in a Longer-Term view . . . something that would be incredible given how far she’s come Up already and given the current economic conditions, though seen lately through trumped-up glasses:
2 – using this same method of judgement, QQQQ is on the Bullish side already .. Technology being a Strong Sector .. BUT, will soon be bumping up against Strong Resistance and has struggled lately even getting past the initial Resistance of 40.00
In conclusion, I expect a pull-back .. in SPX to retest that 968 break-out level and in QQQQ to retest the MAs now below it.
