Another Weekly XJO Gain

The XJO finished the week with another gain, making it 12 out of the past 13 weeks in the black. More importantly, this is the second consecutive weekly close above the key 4,962 mark (50% retracement of all time highs). With the XJO coming close to the upper bollinger band on the weekly chart, it is possible that it may be pushed lower back towards 4,962. Skeptics will point to the exponential pattern in recent weeks eventually coming to an end, however, with MACD supporting the bulls for now and the 50WMA crossing the 100WMA, the rally may yet take the index higher.

The daily chart showed indecision today, with prices bound within the upward trending channel. 5,025 held for the bulls as they look to trek higher. Bears will be looking to break down the rally back under 5,000 next week.