A/D Line Points Higher
06/16/2010 9:36 am EST
Very bullish action on Tuesday, and the A/D numbers confirmed the price gains as the bears are starting to run for cover. We had been looking for the market to bottom out since May 25 as the better relative strength of the Transports, as well as the small- and mid-cap averages, kept me positive on the intermediate-term trend. The next key resistance is in the 1125-30 area, which may cause the market to pull back, but I then expect a move to the 1150 area as we head into earnings season. The A/D line has broken through resistance and its WMA, both of which are positive for the near-term trend.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.