SOMETHING SMELLS RIGHT

If you take a closer look at the last couple of days rebounce of US stock markets, you can find great signs of bullish momentum and more rooms for potential rally. We are pretty optimistic about the near future and expecting the US indices get back to the previous record levels.

Yesterday US stocks closed higher for the third time in four days and indices gained again significantly. The Dow returned to positive territory on year to date and lifted up to +0,45% profit. All the sectors closed Wednesday in green. The benchmark indices are bouncing back from their last week lows and by now the markets are only 4% from their peaks in July.

• Dow +0.55% 
• Nasdaq +1.02% 
• SP500 +0,69% 

At the SP500 chart there is a clear break out event. The index crossed the previous resistance level at 1,935 than back tested on Tuesday and jumped higher on Wednesday so the area is opened up to the 1,970 key resistance level. There is a relevant chart pattern too on the SP500 chart, the reversal head & shoulder one, which is also strengthening the further bullish momentum.

The BFM Assets Team.