Stocks Heading Higher

I was skeptical that the bottom for this correction was put in just before a shortened holiday week. But the move higher the last few days and today have been strong.  Below is the Summation Index.

The Summation Index is a market breadth indicator.  Notice that it has crossed over the moving average and is heading higher.  This is a positive sign and signals higher prices ahead for stocks.  

The chart above is short and long term bullish as the index trades above the 10 day moving average and the 200 day moving average.  A test will occur just above at the 50 day moving average.  Otherwise today was a rather strong day for the markets with decent volume.  

Bottom Line:  The markets are looking poised for higher prices in the near term.  The index is trading above the 10 dma and the 200 dma, with a test coming above at the 50 dma.  The summation index has crossed over the moving average which is bullish and signals higher prices ahead for stocks. Thank you for reading.