The correction in stock market is coming for sure. Please emphasize on the word “correction”. It should start today but for whatever reason if it does not, don’t be disheartened, assuming you are short. In the worst case it may make another attempt to revisit the high of yesterday. But long term resistance is in place which will be very difficult to break in this attempt. I cannot find much upside but stock market is its own master and does not listen to me.
Let us look at the DOW chart. I have drawn a trend line, touching various points.
It closes exactly at 12515. And Dow touched that point and came back. The resistance at 12500 is huge. Dow has formed a symmetric triangle and only place left is down.
Same situation with SPX. The trend line resistance is at 1292 and there the SPX turned back. It made a kind of double top (high of 10/27) but a close above this level will take SPX to 1305 not much further.
Although we are looking for a correction but the bull is not dead and gone. I will write about that around January 20. Before that we have some unfinished business to complete. Let’s see how it goes today.
Very interesting date you mention here, Jan. 20. I look forward to reading your view. After earnings season, I do not have much of an opinion regarding direction until May. Thanks for the post, TexEx.
ReplyDeleteThanks guys. My cycle bottoms at 20th.
ReplyDeleteI appreciate your opinion very much. Would like to hear if you are still concerned about choppy trading during remainder of Jan.
ReplyDeleteHope your trip goes well. GRC
Hi bb,
ReplyDeleteThanks for your blog. Remember my post from 1 week ago about Gold 1678 and Silver 31 or 34. I'm still looking for that, along with 1320-40 ES. All before Jan 21. GL!
Hi bb, I am also going to Asia from Jan 14 to 20. Seriously. Buy you a drink when I see you there.
ReplyDeleteOK Win, we will raise a glass together.
ReplyDeleteBy the way, we will need a different kind of cool aid to drink for ES 1320-40 or Gold 1678 before Jan 21. May be after 7th Feb, not before.