Charts and More....

Futures this morning are point to a slightly higher open, and it seems that Obama’s speech last night put some optimism back in to investors.

Long term I see a market that will be higher at least making new highs within a few months. Below is a chart of the $RUT on a weekly basis, and the current candle is indicating a reversal back higher. Again the reversal candle is sitting on an uptrend support line swing low. But the only problem I see is that the advancing declining line is showing a negative divergence, with could turn out to be very important, if investors are not willing to buy new highs the markets will crack.

The S&P chart looks as good if not even better than the $RUT chart on a weekly basis. But the same problem occurs; the A/D line is signaling a negative divergence. I would like to see the $SPX close above 1100.