[isatrader]

Here's the weekly overview charts of the NYSE, Nasdaq, S&P 500, DJIA & S&P 600 small caps with their US Bullish Percent and Moving Average Breadth.

Note: This week saw four of the five major indexes that I show close back above their 30 week MAs, and significantly above initial resistance zones from their previous Stage 4 breakdown levels. Combined with continued strengthening breadth, for example, the NYSE Percentage of Stocks above their 150 day MAs is now at 58.24%, and the Nasdaq Composite Percentage of Stocks above their 150 day MAs is now at 48.11%, and the Bullish Percents for them both above 50% and on bullish signals, which only happen every few years or so, as they are long term breadth measures

So this week sees a Stage rating change for the US market from Stage 4 to Stage 1A imo. Which is defined in the Global Trend Alert as Stage 1A - Start of a base. Needs much more time.

This doesn't mean we are necessarily going to see Stage 2 anytime soon in the market indexes, although a lot new leaders in individual stocks are already in Stage 2 and making new highs. But it is literally the very beginning of Stage 1. So we could see a move lower again in the major indexes, a continued move higher, or volatility in both directions for many months, or many different scenarios. Nobody knows. So don't believe them if they tell you they do.

All we can do is follow the clues from the charts and the market breadth Weight of Evidence and trade accordingly based on the risk it shows of the path of least resistance. Which at the moment is some cautious optimism imo, but I'd expect to see some volatility come back soon. So focus on the strongest stocks in the strongest sectors if looking long and weakest stocks in the weakest sectors if looking to short imo. As the early Stage 1 phase presents many opportunities both long and short, and so is a good time for shorter term traders, but is too soon for investors in most cases.