Welcome to Week 4 of May!
So, I was wrong at last!
The
US Market did not challenge the 2750 level last week like I expected it
to. In fact, I was so grossly wrong that the market actually closed
negative last week by 0.26%!
So,
does that mean everything I said was wrong? Was the past 2 weeks just a
fake out and the market is just ready to turn around, crash and take
everything back leaving us looking like idiots?
Well, not really...
Even
though last week was a negative week, it was what I call a "Bullish
Negative Week". Why is that? Well, last week's pullback is the kind of
typical pullbacks in every bull trend that not only isn't dangerous, but
sets up better prices for investors to jump in on and therefore
resulting in new highs! In fact, without such healthy pullbacks, the
market could get dangerously overbought, resulting in investors not
knowing when to jump in anymore. In fact, the way the S&P500 rest on
the 10SMA last Friday, which is a powerful short term bullish support, I
expect to see the market actually jump on Monday, completing a bullish
continual pattern.
Lets look forward to a great week ahead!
For now, the market turns a short term neutral trend within the framework of an intermediate neutral and primary bull trend.
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