Via -TradesAfterWork4/12/2020 Issue 13Posting this to share with our readers:The weekly chart of the S&P 500 Index below gives us a peek at what the market looks like in an intermediate term trend. The first thing that stands out to me is seeing the Stochastics coming up from below the 20% level. On a weekly chart this tends to be more powerful than Stochastics coming up below the 20% level on a daily chart and is not something that you see very often. In fact, we have only seen that happen a few times in the last five years and each time it was followed through with a rally. Will this time be different? We shall see.The Relative Strength Index (RSI) is at 44.58%. We would like to see that break through 50% to confirm or validate the action that we are seeing in the Stochastics.Finally, we can see where the bears will no doubt put up a fight and that is at the 50 Day SMA and 200 Day SMA. Notice that the 50 Day SMA has crossed below the 200 Day SMA. That shows the intermediate term trend is still controlled by the bears. The 50 Day SMA must trade above the longer term 200 Day SMA before we can look at this market going positive in a longer term trend. I wanted to show the Fibonacci retracements numbers. We can see how this bounce has now gone above the 38.2% Fibonacci retracement line after having finding bears there to initially put a pause on the rally. Well, we have gone past that 38.2% Fibonacci number and we are now looking at fighting the bears at the 50% Fibonacci retracement line. It would be fairly normal to have a pause in this area. Look at the candlestick that the S&P 500 Index ended with last Friday. This is what is known as a spinning top. A spinning top candlestick in an up trend can indicate indecision on the side of both the buyers and the sellers. What you look for when a spinning top occurs on an up trend is the next day's trading opening. Whatever direction the market opens up with will often be the direction of the market for the day so, watch how we open tomorrow. Looking at the short term trend of the S&P 500 Index, the bulls seem to be making some improvements. The index price is above the short term 12 Day SMA and seem to be headed in the right direction. Another one of our key moving averages, the 21 Day Exponential Moving Average, is beginning to hold prices up too. If prices can continue to hold up above both the 12 Day SMA and 21 Day EMA that is very bullish action. These moving averages can be the canary in the coal mine when it comes to the market breaking down again.I also like that the RSI is currently over 50%; that shows that things are getting healthier. The PPO is positive but below the zero line, which is fairly normal in the beginning of a counter trend rally. Stochastics are positive and would be considered overbought, but we know overbought can stay overbought for a long time. The NYSE Bullish Percentage Index is again showing the market's level of volatility with this risk indicator flipping back to row of X's or Demand (buyers) in the market. As I wrote last week, "That is not typical behavior. This kind of reversing back into another column so quickly is demonstrating the level of volatility we have in the markets. The NYSE Bullish Percentage Index is just doing what it is design to do, show the battle between Demand (buyers) and Supply (sellers)."I have been in the markets for over 30 years and I cannot recall a time when I saw the NYSE Bullish Percent Index move so quickly back and forth, and more than once at that. The chart below is showing that we are nearing 70%, which would mean that 70% of point & figure charts are giving buy signals. That would also mean that perhaps we are getting a little rich, so we may find some sellers in the market before we can breach that 70% level. We will get a chance to see this week.If I can be of any assistance please don't hesitate to contact me. Take Care! Learn more about them here - TradesAfterWork.com - https://twitter.com/BERNARDCLAY9!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+"://platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs");The Subscribers’ Special Report (SSR) is a publication TradesAfterWork.com. It should not be regarded as a complete analysis of the subjects discussed nor should the SSR be construed as personalized investment advice. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. It should not be viewed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.© 2020 TradesAfterWork.com. All rights reserved. Intended for receipt only and not for further distribution without the consent of TradesAfterWork.com