Technically Speaking: Breakout Or Market Melt Up?
Back in April, as the market surged off of the February lows, I discussed that the “Bear Market Was Over…For Now.”To wit:
“Over the last couple of weeks, in both the daily blog and weekly newsletter, I have been laying out the technical case for a breakout above the downtrend. Such a breakout would demand a subsequent increase in equity risk in portfolios.The breakout above the downtrend resistance suggests a moderate increase in equity exposure is warranted.The breakout also suggests that markets will now try to advance back to old highs from last year.”
As noted, the breakout back in April has indeed allowed the market to advance back to, and break above, the previous highs from last year as shown in the chart below.