SOURCE: YAHOO FINANCE
- We think S&P 500 is due for a major leg down right up to 2330 region and we are possibly going to test it before 2020 US Presidential elections.
- It’s not such a wild idea in the current environment as we are only 12% from the 200 weekly average.
- Every 4-5 years, we retest the 200 weekly average. We tested it last in 2016 so ideally 2020 sounds reasonable. If 1)fed backs off further rates rise and takes a dovish or more accommodative tone; 2) US China trade war gets resolved soon, bull market may continue to roll much longer.
- If we get enough momentum, we may retest the previous highs and the indexes may go up to 2850-2900 region, but it is likely to fail. If we don’t, then we are looking at a continuation of the bull market.
- We are due for a short term bounce off the current lows as (already discussed in another post) momentum indicators show that we are oversold currently.
- If you are frustrated by the ambiguity of this post, just understand that we are due for a bounce back but when we reach the previous highs, keep an eye on the momentum indicators and recoup your losses.
KEEP CHECKING US OUT AS WE KEEP UPDATING HERE WITH NEW POSTS/ IDEAS TO UPDATE ON THE MARKET TRENDS.