Wednesday, February 10, 2016
At extreme medium term oversold, expecting this week is THE bottom.
From last post, the SP500 dropped another 5% before hitting 'A' bottom. But the rally up was only back to the level when I wrote the post. The global fears of the oil plunge and of the China slowdown sent the global stock markets in heavy selling since the beginning of the year. Looking at charts of the major indexes and technical indicators, there are hints of a bullish double bottom patterns developing and positive divergences. I believe 'THE' bottom is in this week for the global stock markets or at least a 10% rally from here.
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The Sp500 have rallied about 13% since this post. Long term is still bullish but for the short to medium term overbought. I'm anticipating a 3% to 5% correction from this week's high of 2056 toward the 1950-1990 level. From there another rally higher should ensue.
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