Wed Oct. 7, 2015 Dow Up 122: Technical Battle at 50-Day MA

Today market action continued the struggle between buyers and sellers at the 50-day MA of the Dow and S&P 500. Chart wise this is occurring on the upper right side of a W shaped bottom. The NYSE A-D line has put in a strong performance on Tuesday, Oct 6 with a +336 posting in the face of a sharp sell-off in the mid and small-caps, especially the growth stocks. The 16 point rally in the SPX and 122 point increase in the DJIA on Wed, Oct 7 was accompanied by a remarkable +1715 plurality on the NYAD.
The McClellan Oscillator recorded a 77.7 reading, creating breakaway gaps to the upside in the NYSE Summation Index. If the A-D line can continue it's current strength, it will generate a clear and unequivocal uptrend in the NYSI. A strong Summation Index rally is as close as it comes to a silver-plated guarantee of a powerful and long lasting intermediate term rally in the price indexes. That goes for the NASDAQ Summation Index as well.

http://stockcharts.com/freecharts/gallery.html?$NYAD
http://stockcharts.com/h-sc/ui?s=$NYA&p=D&yr=3&mn=0&dy=0&id=p83733137120

But the bulls must overcome tenacious overhead resistance at the 50-day MA of the major indexes as they approach it from below. The Chart of the NYSE Composite very clearly shows the overhead resistance exerted by the 50-day MA:
http://stockcharts.com/freecharts/gallery.html?$NYA