Must See Charts For The Stock Market

Two days ago I wrote about the significant support area in the S&P and how SPY has been spiking below 105 and closing on its high. That in my opinion was a sign of aggressive buying at lower levels. Volume today increased which is somewhat bullish.

Now lets take a look at what On Balance Volume is saying.

On this last swing down below the February low in the Dow Jones Industrial Average,. OBV did not come any where near its February low creating a very powerful and obvious bullish divergence.

We see the exact same thing take place in the S&P. The On Balance Volume indicator is diverging from price.

Remember this chart above I posted last week?  My interpretation is that this chart is sending a very strong message and it's a bullish one.

Last but not least we have the very accurate 31/2 month cycle which is calling for a low during the month of June.. Its amazing how accurate this cycle has been over the past 2 years.

As you can see I have my reasons as to why I am bullish on stocks. I actually bought a few things yesterday only to watch my stocks fall on their face into yesterday's close. I took half my position off at the close yesterday and was forced to buy them back at higher prices today when the market dipped slightly. Hey, no one ever said this is easy.