Stocks are back in fashion this week as rate cuts next June by the three major Western central banks (US, EU & UK) are now being actively priced in by market participants, states Ian Murphy of MurphyTrading.com.
Buyer’s enthusiasm was clearly on display this week as the S&P 500 (SPX) moved back above the 1ATR line on a weekly chart, so it’s time to look for a trigger in our preferred weekly strategy.
The indicator on the 52-Week Strategy has been rising steadily but we’re not there yet because it closed below the zero line yesterday. Bear in mind this is a weekly chart, so the price bar (and the indicator) are only complete when the week is over. For this reason, I tend to ignore the price bar on Monday and Tuesday and only begin to take it seriously after Wednesday.
The indicator will have to close above zero today (arrow), and again next Friday (Nov 24) for a valid re-entry trigger. Occasions like this really test our patience because we might have to sit on our hands all next week, and that could be challenging if stock markets are strongly bullish.
Learn more about Ian Murphy at MurphyTrading.com.