The recent downward move from 15542 to 14844 is most probably a correction that finished. Overlapping price action is the main characteristic of the structure of the decline, something that strengthens our belief that this downward move was corrective. We believe that longer term trend remains up and that an intermediate term bottom at 14844 has been made. We expect prices to move higher to new all time highs.
As shown in the daily chart above, the downward price action has a similar pattern as in the mid April period. The structure of the price movement when prices are moving impulsively is very different from when they are correcting. We believe that the correction phase is most probably over and prices prepare for another leg up. Short term support is found at 14980 level. Longer term support is found at 14400-14300 area.
Taking a closer look above at the 60 minute chart, we observe that prices broke out of the downward sloping blue trend line and that yesterday this line was back tested. Even the intraday price action to the downside has an overlapping structure and most probably is corrective. On the other hand the upward move from 14844 to 15300 is clearly an move and we expect at least another leg up. For more help trading this index don’t hesitate to contact me.
As always, thank you for taking the time to catch up on my thinking.