The revenge of the bulls continues as the bears are now pressed into proving their mettle at critical resistance from several 50-day moving averages. The major indices faded from 50DMA resistance, but it proved to be a temporary setback. Now, conditions seem aligned for a major breakout.

Traders should still consider a stock’s individual merits and technical condition even when the general market is pointing decisively in a given direction.

While most of the financial media focuses on how the U.S. jobs report presumably drove a major recovery in the indices, last week was all about oversold trading conditions.

The 50-day moving average helps filter out day-to-day volatility in the markets, allowing us to focus on the intermediate-term trend. When the slope of the 50-day starts to flatten out, it tells us the battle between the bulls and bears is relatively even from an intermediate-term perspective.

12 trading days since the S&P first hit 2,000 (Aug 25th) in which we have failed to hold 2,000 for a full day. Not one and, unless the Futures pop 10 points before we open, not today either.

Yesterday, the market has swung back into a danger zone.