Summary

The stock market has come alive after some scary moments last week. Previously three days, the S&P 500 (SPX) has gained almost 3%, while the Nasdaq and Nasdaq 100 (QQQ) have reclaimed over 3%. The SPX is up 3.6% from its intraday low last Friday, the Nasdaq has popped 4.5%, and the QQQ is up 4.2%. The SPX has retaken its 50-day average quickly, and the five-day/13-day exponential moving average (EMA) crossover is near turning bullish. The five-/13-day EMA is already back to bullish on the Nasdaq and the QQQ. All three indices have retraced over 61.8% of their recent setbacks and will not be removed from making all-time highs. Indicators we rarely discuss, and that are just like Bollinger Bands, are price channels. For the each day chart, we use 20-day price channels. The upper channel is the same as the 20-day high, and the lower channel is the same as the 20-day low. The center channel is the midpoint of the opposite two channels. There are various ways to interpret price channels. They may be used for support and resistance, overbought and oversold areas, the initiation of a robust uptrend with a break over the upper channel, and vice versa. From October 2023, the SPX fell below its lower channel but rebounded quic