The last two short term posts for potential weakness did not pan out as the stock market continued to grind higher. The heads up now is that the negative divergences for recent weeks are still hinting of possible correction on the horizon. Note from the chart that the rally since the beginning of September has been quite similar to the February to April rally. Not that I suggesting a similar crash could happen too... just that if there is a correction around the corner then I expect the support level around the Nasdaq 2325 to halt further drop.
My last medium term post called for a large rally based on the Inverse Head and Shoulders pattern of the SP500 has worked quite well. My target of above 1130 have been achieved and the uncertainty of whether the April highs of 1210s remains possible... but as this post here is to warn of potential correction back down first.
No comments:
Post a Comment