What is the roadmap now?
What is the psychology of the market(s) ?
In words:
The Fed rally was explosive - however this was probably short covering and machine driven trading - this means NOT much SUPPORT for the market.
The "XiTrump" rally was also a NEWS driven rally - again these rallies don't give a lot of support to the market as they are too quick/
Explosive rallies like these tend to be characteristic of BEAR moves so for the moment the DOWN trend since October remains in force.
So where to? Short term I expect markets ti accelerate the move to the downside (today US markets closed) so maybe Thursday. Reason being that they have spent a couple of weeks consolidating - corrective - so next leg down soon.
Targets remain the same from previous posts DOW 23200 DAX 10200 FTSE 6400 (? complicated with BREXIT )
If markets don't reach these then likelihood is selling is abating.
If markets reach these targets then what happens next will give clues to the next move.. RALLY or further DOWNSIDE.
Charts below of the DJI
Charts of DAX showing head and shoulders targets (notice coincides with long term up trend)
Looking forward to THURSDAY!
Hi Mark, I just started following your updates. Found you on Nadeem's Patreon comment section. Like your comments on the current state of market and I am pretty much in sync with market from October. But recently went LONG with Nadeem at 24500level and npw
ReplyDeletewondering what the heck is happening for next few weeks. I also feel like you in terms of what next, but Nadeem has been pretty accurate most of the times multi-week level so giving benefit of doubt to him for now! Let us see whether it is you or Nadeem this time!!!
Hi Shyam cheers for the comment - as you know markets are always dynamic, and how you trade them is dependent on your time frames..I also have been in synch with the markets but know that it can change ! Stops in and take profits in as you say we'll see Good luck!.
ReplyDeleteThanks for commenting