All three major US indices have pushed towards their 50% retracement levels and bounced higher. Could this short-term pull back be over? Of course it can and we could already be inside a new upward move that will bring indices to new highs. All three indices have yet not confirmed the upward reversal and we can still see a new low towards the 61.8% retracement levels. So if we break below Wednesday’s lows.
All three indices have broken above the 2 month consolidation and are now pulling back to back test this break out. All indices remain above their Ichimoku cloud support levels and have retraced 50% of the rise from February lows.
I remain longer-term bullish in all three indices expecting to see new ATH over the coming weeks and the bull market to continue slowly but steadily so that more bears are lured into selling this market.
Concluding I post the monthly chart of DJIA. A 10 year consolidation top and the megaphone pattern were broken to the upside. The Ichimoku cloud indicators point higher . This says to me that even if we are at a bubble, we are only at the start of it.
As always, thank you for taking the time to read my new post.