The S&P 500 index has finished the 2nd daily cycle on 02/27/2019. Now it is marching into the 3rd day in the 3rd daily cycle, which means it is entering the beta cycle phase in the weekly cycle. The market looked straight up in the untrained eyes because of the low volatility, but the cycles are functioning as they have always been.
The market has rallied impressively for the last 9 weeks and it has caused major heart aches for the bears and the scared retail investors who have been told to stay on the sidelines. From the market breath perspective, you have to admit that the likelihood of re-visiting the December low is getting slimmer as time goes on.
The S&P 500 cash index closed above the highly watched 200-day moving average for the last four trading days. The equities market is acting everything is fine, the FED is backing off from tight money policy, the trade war is going to be resolved and the growth engine will be back on again.
Finally the index went points close to the 200-day moving average, but it had a very mild reaction, there is no forceful selling, period. The mood of the streets is “under invested”, meaning the majority missed the bulk of the rally, either the longs got out too soon, or the bears shorted too soon.
The market staged an impressive 10.71% rally in the last 10 trading days. It took 65 trading days to decline 20.21% from the September top to the December low. The S&P 500 December price low was right at the 200-week moving average, meaning the price was at the maximum pain level for the long term bulls.
