Just some quick thoughts about the coming days:
- With NYMO very high, we may see a pullback tomorrow.
- However the up momentum is still strong and will likely test 1380 in the next few trading days.
- It is possible to treat this up move as wave 4.
- While my target for upside is around 1380, it is not something written in stone and can easily over shoot to 1400 +/-.
- Do not be in a hurry to short yet, you are not going to miss the opportunity.
- My target for downside is 1200-1230 by end of July.
- Market is the final authority of its direction. We just anticipate the turns but never fight it,
Let us now enjoy the barbecue and beer.
$150 points correction from here ? a correction down to that low of 200 points from 1420 on SPX, would sure require enough accumulation phase of 3-4 months (close to NOV elections) before another bull run. do you think it could happen during presidential election year ?
ReplyDeletePrasad
The reason why it can and will possibly happen (SPX 1200-1230) is: without panic there will not be any more free money. And there is no bull run. A bull run is a continuous and sustained up swing of the equity prices supported by growth in economy. What we have is bull-shit run, where TBTF banks manipulate the price with the Fed provided liquidity. More so in a Presidential election year.
DeleteThanks again for the insights, BB! Hope you had a nice holiday.
ReplyDeleteThe problem I see now is that Euro is under 1.24, level even lower than before the ECB announcement, so I am not sure how much gas is left in the tank for the bulls to move this higher.
A down day is expected today. But most likely it is a beartrap. I expect there will be another push up beyond 1380.But it does not matter 1370 or 1380 or 1400.Question of max 30 more points and few more days. Better be safe and get a good entry.
Deletewhat's your opinion on this euro movement, BB?
ReplyDeleteI am waiting for a clear direction.I think it has seen the high but need confirmation.
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