Every once in a while I look for a retest after a breakout. When a market takes a long time to retrace to the breakout point and continues higher (such as the markets did off the 2009 lows), I get a bit curious as to how the whiplash back towards the breakout point will feel - I would say that since May, it has been painful. But as you can see from the 65 week MA, breakdowns below it followed by a failure to reclaim generally argue a
bear market is upon us and on the other side of the ledger the breakout from last year has been retested and the market bounced back above this key MA this past week. Would this count as the successful retest? Since I am bullish, I would argue yes. But at the same time, we will get confirmation of such Sunday night if the bulls can breakout to the upside.
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