Week 32 put in lighter volume trading and formed a doji on the weekly bar, however the more we move sideways here the more of a bullish bias we will take. Sideways action after a vertical move higher forms a bull flag formation (a bullish chart pattern). While, not much has changed from week 31, the sideways action creates a base of support here which if broken to the upside should send stocks higher.
On the weekly chart of the S&P the 50 and 200 Exponential Moving Averages are turning slightly higher. Keep in mind the down trend line across the lower highs of ‘07 and ’08.