The Market Shows Signs of Live

Hello my Investors, Traders and Readers friends. Yesterday, the market reacted very positively. The DJ-30 went up 2.97%, the Sp-500 increased 3.43% and Nasdaq Comp. grew 4.29%. The volume of stocks traded was nor spectacular but good enough. 485 stocks of the total the SP-500 closed in positive territory. Very good news. In my particular list of 250 stocks, 229 closed with gains. In addition, 51 of these stocks showed a daily gain of more than 8%. This was not seen for many weeks!!!.

Another positive aspect is this breakthrough came in the midst of bad news from the real estate. In part, the market rise was attributed to rumors about what the FED communicate to investors this week. I have the impression the market went up by itself. That seems more positive.

Additionally, an issue that I think is important is the formation of a zone of congestion. As shown in the chart below, is forming a major congestion area that could give support to the market in the future.
From this level, the market should continue to rise until its next level of resistance (or SMA50 days). In the case of SP-500, this level is around 1,250 points. This is enough space to take advantage of trade opportunities.

Obviously, this is a way to be full of volatility. However, it will generate many opportunities for profit. Yesterday, it was possible to appreciate a large number of stocks with very good position to continue to rise in the next few days.Please click on the chart to enlarge.