Post Putin stock market recovery
Market swung higher after Russian strongman Putin eased some of the tensions out of Ukraine invasion over the weekend. We had a very bad opening Monday as the market painted a crimson candle, but the press conference by Vladimir Putin eased the tensions and market catapulted higher next day as if there was no tomorrow.
We have seen a break out from the inverted head and shoulders patterns and it was not a false breakout. The market is now climbing higher till it hits the upper channel of the incline. That will be the resistance point and sellers may sell or shorts will get an upper hand. This is a bull market just remember that, and as the economy heats up, so will be the appetite to swallow more stocks.
Friday saw 162,000 jobs added which is weak number and the market took it in stride and mulled over. There was not much to gain except it didn’t sell off on the news. Currently the pendulum is on the upswing and all the charts on major stocks are looking bullish this week. We would be probably close higher next week, even though there are some overbought readings on RSI and MACD. Those reading cannot deter bulls and the market may just keep on climbing, it’s not a short set up- yet. It will be once we hit the upper channel in the video and hit resistance from tend lines.