What a bullish market!!! Last week I mentioned in my twitter stream that I like the fact that all the top callers and all the perma-bears and doomsters are back at tweeting and being happy….Today all of them are begging for another pull back to catch the SANTA train to new highs as they really understand now that they missed it. All major indices have retraced a typical 38% pull back and are ready to test their recent all time highs.
What can bulls expect after a corrective decline to the 38% retracement? The rise from the 1972 lows is impulsive. We could be close to completing the 5 wave sequence so a pull back towards 2030 should not surprise us. Next we should expect another leg higher that will push the index above 2100.
Another very clear corrective pattern of the recent all time highs has found support around the 38% retracement. Impulsive upward move in the process right now and we could continue higher towards 17800 until we complete the 5 wave pattern. A pull back towards 17500 would be an ideal pull back for late comers.
Impressive upward move after a corrective decline from 4347. Nasdaq also reached the 38% retracement and is looking very strong. Seasonality does not live us with many options. Trend is expected to continue to be bullish at least until the end of the Holiday period. Although there are very slim chances of this bearish scenario, I have to also mention it. In case we break recent lows, 61.8% retracement will be the target. Personally I expect new all time highs and 2015 to be a bullish surprise to even the biggest bulls….