Rising Bullish Divergence Spotted...
Welcome Back from the Christmas Long weekend!
Hope you guys all had a great holiday season whether or not you are religious. Its still a great time to just relax and have fun.
Well, last week, the market did exactly what I expected it to in a Santa Clau Rally, upwards. This is New Year week, another long weekend week, how will the market typically behave in a New Year week? Well, New Year week behavior has been less certain than Christmas week, particularly in the years leading into and in a market crash. This means there isn't a significantly strong enough abnormally to really make a strong stake. This is compounded by the fact that the market is once again up against the 30MA resistance level. However, I spotted a very powerful bullish reversal signal, which is a series of rising bullish divergences made on the fast stochastics against the declining price troughs. This has typically preceded significant and powerful bullish movements, such as the reversal in June 2012 and February 2010 and much much more. Weighing the typical resistance power of the 30MA and the reversal power of such a bullish divergence, I would put the short term odds in favor of a breakout of the 30MA and a retest of the 2100 level. This scenario is also in line with the year end window dressing abnormally. What the market does at that level is another story entirely.
Profit with me going into the New Year with my 50% off Year End Sale! Check it out at Mastersoequity.com !
Lets look forward to an exciting 2016!
Market Crash Timer: ORANGE
For now, the market turns a short term bull trend within an intermediate and primary neutral trend.
Hope you guys all had a great holiday season whether or not you are religious. Its still a great time to just relax and have fun.
Well, last week, the market did exactly what I expected it to in a Santa Clau Rally, upwards. This is New Year week, another long weekend week, how will the market typically behave in a New Year week? Well, New Year week behavior has been less certain than Christmas week, particularly in the years leading into and in a market crash. This means there isn't a significantly strong enough abnormally to really make a strong stake. This is compounded by the fact that the market is once again up against the 30MA resistance level. However, I spotted a very powerful bullish reversal signal, which is a series of rising bullish divergences made on the fast stochastics against the declining price troughs. This has typically preceded significant and powerful bullish movements, such as the reversal in June 2012 and February 2010 and much much more. Weighing the typical resistance power of the 30MA and the reversal power of such a bullish divergence, I would put the short term odds in favor of a breakout of the 30MA and a retest of the 2100 level. This scenario is also in line with the year end window dressing abnormally. What the market does at that level is another story entirely.
Profit with me going into the New Year with my 50% off Year End Sale! Check it out at Mastersoequity.com !
Lets look forward to an exciting 2016!
Market Crash Timer: ORANGE
For now, the market turns a short term bull trend within an intermediate and primary neutral trend.
posted by Jason Ng at 6:11 PM
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