SOURCE: YAHOO FINANCE
WOW!!! Not too long ago, we mentioned in the article here. We did not expect it to happen so early.
We mentioned earlier “it is not such a wild idea in the current environment that we will fall right to 200 weekly average…We also noted that we are so oversold now that any good news is likely to bring the market up almost 6-7% or more like a spring.”
Markets have behaved as we predicted so far. Look at the charts to notice that the S&P 500 has also found support at a TREND LINE dating upto 2009 February low.
What are the implications of this?
First, we have rallied (as predicted) from the 200 week average.
We are likely to retest the lows in the coming weeks. That should provide a super buying opportunity.
If the support at 200 week and the Trend line( dating back to 2009) breaks, then the next floor is at 2100 level, which acted as a support in 2015.
Watch for rally leading up to 200 day average. Market will find it hard to breach this resistance unless the underlying fault lines such as trade related issues get resolved.
Unless, we break that mindset, we are likely to continue to fall and test and retest the average.
KEEP CHECKING US OUT AS WE KEEP UPDATING HERE WITH NEW POSTS/ IDEAS TO UPDATE ON THE MARKET TRENDS.