On march 13th I posted an article where I mentioned that US indices were approaching important support levels and how I expected a bounce from certain levels that will be the beginning of the next upward move to new all time highs. Read it here. US indices with RUSSELL 2000 leading the rise and already at new highs, have bounced as predicted and are now trading in a new upward move that is expected to bring new all time highs.
Above you can see my RUT updated chart with the new highs. I believe the first stop to this rise will be at 1280 and after a small pull back I would expect this index to continue higher towards 1350. RUT once was leading the decline into October lows, this time it is leading the rise to new all time highs.
Nasdaq unfortunately did not go as deep as I expected but managed to reach the 50% retracement. All three big indices (DJIA-SPX-NASDAQ) have broken above the 2 month consolidation period and have now back tested the break out area successfully. You know what we should expect next don’t you.
The S&P has also managed to pull back at the Ichimoku cloud and at the 100 day EMA and around its 61.8% retracement from the February lows. Soon we will be near our all time highs where the 1st important resistance is found. Breaking above 2120 will push the index towards 2200-2300 over the coming weeks.
DJIA has also manage to hold above the Ichimoku cloud and retraced 50% of the rise from the February lows. The decline is clearly corrective and the bounce is expected to bring the index to new highs.
Afraid of a 1%-2% pull back? Twitter timelines filled with bearish and permabear tweets? You know that this up trend remains intact and strong as long as this fear of an impeding reversal is there. I do not know if I follow the wrong people….but from nearly 200 I follow…only a couple of them are bullish…only 2…Anyway, thank you for taking the time to read my new post.