With DOW making all time highs and S&P ready to test its all time highs too, markets rise despite worrying signals from Europe. Lets take a closer look at the dominating wave count for those two indices. Both indices are currently in their 3rd upward wave within the last 5th wave up. This 3rd wave is incomplete and will probably end at today’s open.
Trend remains up but should keep in mind that we are most probably in the last wave of the entire up move from mid November. A deep correction with similar speed and slope to the previous one (1530-1485), only bigger this time, is expected to follow after this up move is complete. Better safe than sorry, so raise your stops as long as markets makes new .
As always, thank you for taking the time to catch up on my thinking.
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.