Major indices lifted up out of there consolidation areas yesterday. We had noted a couple of days ago that they were trading with a series of dojis, indicating a refusal to go lower. Now the double bottom has provided both support and a second price surge.
Indices are now poised to retest recent highs. It’s likely they will considering the number of stop losses placed above by the massive short position that has been undertaken by retail traders over the past few weeks. As those shorts are covered at higher price it may continue to give this market a lift and move it back into the healthy position where it is once again climbing a wall of worry.
We don’t want to make too many predictions about what to expect next though. It’s better to just wait and see at this point. We will note that a number of much better set ups are starting to emerge. They are still few and far between, but the trend shows improvement.
Schedule: The market will be closed on Friday for the holiday weekend. We will take the day off tomorrow as well getting an early start. We hope everyone has a great weekend.
2 comments:
the market has climbed so much since last june. without a greater correction it must have a longer break before it can rise again.
i'd like to make a prediction: dow at least down to 12100.regard.
i didN'T predict for today.regard.
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