Market Optimism, next milestone 4,600

Have you seen one of those goats that climb mountains and you don't know how on earth it got so high and doesn't fall? I see the Market behavior and I think exactly the same thing. How did it got to 4,500 especially on the same old news that previously made it sink? There is now optimism that the USA economy is strong enough to resist the rate hikes that the Fed is planning. A week ago, the same news were sinking the Markets testing the 4,191 support. It doesn't really matter, the Market is a discounting mechanism and it doesn't always makes sense right away. Besides, with four long positions open if the rally continues that's great for me.

Reviewing the daily chart, I do like that five out of six bars closed near their highs. In six days, the movement amounted almost 340 points. I'll likely open more long positions if the S&P can make it above the 4,635 line. It needs to show some force, but if it does, then I'll have more confidence trading more aggressively. In February, that's where the rally stopped, lets see if this time it can make it past that level.

The numbers in the New Highs and New Lows are still bullish, the selling pressure hasn't increased significantly. It will be important to monitor columns G, H and I which are the Monthly columns, the fastest timeframe of all the ones displayed. It could give some early warning when the Bears finally attempt to kill the rally.

Risk management is still the key, don't hope that the S&P will continue rallying. Eventually there will be at least a pullback.