For those that don't already know, a power trend starts when these four things take place simultaneously on a major index:
1) The low is above the 21-day exponential moving average (EMA) for at least 10 days.
2) The 21-day EMA is above the 50-day simple moving average for at least five days.
3) The 50-day line is in an uptrend (one day is sufficient).
4) The market closes up for the day.
We have seen this remain the case. There are also strong correlations between the S&P, and US real estate. The housing shortage will push real-estate up, in turn pushing the S&P further. In order to cut this power trend short, we'd need an abrupt drop, which doesn't seem to be the case. These trends have been seen to last multiple years.
1) The low is above the 21-day exponential moving average (EMA) for at least 10 days.
2) The 21-day EMA is above the 50-day simple moving average for at least five days.
3) The 50-day line is in an uptrend (one day is sufficient).
4) The market closes up for the day.
We have seen this remain the case. There are also strong correlations between the S&P, and US real estate. The housing shortage will push real-estate up, in turn pushing the S&P further. In order to cut this power trend short, we'd need an abrupt drop, which doesn't seem to be the case. These trends have been seen to last multiple years.