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There are so many traders and investors that remain bullish even when the stock market is under distribution. Bull opinions during market corrections are expensive. Smart traders and investors follow the trend. They go with the flow of price action.

  1. All stock indexes need to begin to trade above the 10 day EMA consistently for multiple days.
  2. The 10 day EMA needs to hold as intra-day support.
  3. The market needs the shorter term moving averages to begin to cross back over the longer term moving averages. Like the 5 day EMA over the 10 day EMA and the 21 day EMA over the 50 day SMA etc.
  4. The up days need to be on higher volume than the down days.
  5. Index ETFs need a MACD bullish crossover that holds.
  6. A large bullish engulfing candlestick that closes over the previous days price range and the 5 day EMA.
  7. Finally Index ETFs needs to close over the 200 day as my first sign of bull power and the potential for a return to all-time highs.

Here are 7 things I need to see to become bullish again and stop shorting strength primarily and start trading more on the long side.

If all these signals are met, I will become bullish again. Until then, the bears have control and I will be trading primarily on the short side.