Stock Market Analysis

Monday, May 21, 2018

I was WRONG!

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.


Post a Comment

<< Home