After two volatile weeks and a 3% downward correction in S&P that pushed prices lower more than 40 points, the upward sloping channel as shown in a previous post is intact and so is the bigger bullish picture. Last time we talked about bullish potential, we were analysing Dow and the possibility that the 5th wave is not over yet, but only a part of it, as it seems to be extended.
It seems like the upward move in Dow is going to extend higher and most probably will make new all time highs. Support is depicted in the chart above and should hold for the bullish scenario to stay alive.
S&P on the other hand, has been pushed higher by the and has broken the short-term resistance at 1525. With the upward pattern being prices are soon to test 1540 and why not the all time highs. 1484 is the line in the sand for the market direction, however moving outside of the upward sloping channel (1500-1490) will put the trend in danger.
Concluding we remain short-term bullish as the correction we were expecting was a short-lived one of a lesser degree. Stop levels will be raised as prices climb higher in order for our positions to be protected. Our members were informed by exclusive tweets twice of the sell signal given by the market at both peaks, and again was informed twice of the buy signals at 1490 and 1507.
In yesterday’s newsletter, members were informed regarding the buy setup that we found in DAX:
We favored going long in Europe as conditions were more favorable than going long in the US. Today our target was reached and surpassed by more than 50 points.
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As always, thank you for taking the time to read my new post.
A term used to describe a trader who is expects that a particular asset – be it a commodity, currency or product – to rise in value. The opposite of a ‘bear’.
The idea is that bulls attack by bending their heads and poking their opponents upwards with their horns, symbolising the fact that they are buyers, driving prices up.
Beliefs held by the aforementioned ‘bulls’ of the trading world, are described as bullish. Characterised by a generally optimistic outlook on the state of a given asset, a bullish outlook would suggest that a rise in value is imminent. Opposite of bearish.