Even if in theory we need to move above last Friday's high to confirm our view, it appears the market wants to go higher. For now the right look highly suggest the consolidation is taking the shape of a bullish contracting triangle, at least for the Nasdaq. Last week low was wave C and we would be moving higher in wave D which are usually straight forward affair. The upper red trendline shown on the chart will act as a magnet for the upcoming days. Once there, expect the market to surprisingly drop in a sharp and short wave E which are often generated by a news event. Thereafter, the market will resume its march to new high.
Keep in mind that Wave E cannot exceed recent low. Thus if we do, this scenario will be negated and our Outlook will have to be revised.
Most technical and sentiment indicators are in bull mode i.e. are oversold. The Put/Call ratio is one of them being close to 1.2 which is seen at bottom.
We have to listen to the market and be bullish for a little while.
Thanks for reading.
Keep in mind that Wave E cannot exceed recent low. Thus if we do, this scenario will be negated and our Outlook will have to be revised.
Most technical and sentiment indicators are in bull mode i.e. are oversold. The Put/Call ratio is one of them being close to 1.2 which is seen at bottom.
We have to listen to the market and be bullish for a little while.
Thanks for reading.
Comment:
For the Put Call Ratio, we meant the 10-day moving average is at 1.2.