The market rallied today towards the Trend Average and the 50 DMA as expected. Given the strength of the rally and the almost 3 weeks of selling, we could be seeing the beginning of a new rally to new highs or another rally to elevate prices and then sell off again to form a flat. The market is up just 1% this year vs 7% for the same period last year. So one could argue the market is either topping or buying time to rally in the second half of the year. The pressure remains on the bulls to make new highs and to turn all major trends to the bullish side. Failure to turn the TA positive will likely result in lower lows.
I ended buying oil again because of its pattern and I am still hoping for the rally in China to continue. The MSCI decided to include China shares in its benchmark in the near future but not immediately, so the next few days could be interesting. To me, China remains a no brainer so whether it gets to my target this month or next year it doesn't matter as I'm confident that market will eventually get there.
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Short Term Trend = Bearish trend being challenged
Medium Term Trend = Bullish trend being challenged
Long Term Trend = Bullish
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