Stock Market Analysis

Monday, April 30, 2018

Bullish Breakout Looming!

Welcome to the final trading day of the first 1/3 of the year!

Yes, what a lot of people don't get it is that not only do quarters mark major milestones in the market, 1/3rds do too and usually marks big changes in the market as well. And this time round, as the first third of the year comes to a close, I do expect some big changes in the market as well. And what is that?

A major bullish breakout!

Yes, the first third of the year has been the most volatile in years and it has come to a point where both the technical pattern and the general market sentiment is crying out for a bullish breakout. Yes, just like what I said at the start of the year, I expect this year to be like 2007, a run up year before the market crash which, from how the bonds market and global economic data is lining up, seems to suggest some time around 2019. As such, I don't see this intermediate correction end in any other way but a resuming of the previous bull trend.

On the technical front, the S&P500 formed an clear, textbook styled, bullish wedge formation with bottom raised by its 200MA (or some call symmetrical triangle, I personally don't see why its symmetrical), a bullish formation which is so textbook styled that any half decent professional investor would have noticed it and would be acting on it. As such, I personally do not see the market going any other ways either.

So, lets enjoy the ride upwards!

For now, the market remains in short term neutral trend within an intermediate neutral trend and primary bull trend.

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