The market made a lower low as expected and the close was under the 200 DMA (2589). I assume the 2532 low will be tested if the 200 DMA is not recaptured asap and if that support level breaks the chance of a bear market coming increases considerably. I have been in cash for a few weeks now and might go long only if I see a sign of a bottom pattern at 2532. If not, I will be just saving as much cash as possible and take advantage of the bear market sale. What I wonder about is if we do we get a bear market, will the economy follow soon into a recession? Odds say we will likely get a recession within 18 months as we are now in the second longest economic expansion since records have been kept. Also, given the disastrous decision to implement tariff on others bypassing the WTO will surely help the bear cause. Maybe I am dreaming but imagine 1575 in 2019 :)
Medium Term Trend = Bullish trend being challenged
Long Term Trend = Bullish
* Trends are not trade signals. Trends are posted for situational awareness only and does not take into account wave counts, technical or fundamental conditions of the market. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking
No comments:
Post a Comment