Holidays are super fun....maybe. We look ahead to celebrating a New Year with the arrival of 2019, but just like losing holiday pounds we have some baggage to deal with. The correction starting in October 2018 is still in progress and is shedding points from prior excess. What can we expect?
I'll keep it brief and at a high level since my last couple of weekly posts contain plenty of supporting details. I expect the current bounce to be temporary, followed by at minimum a re-test of the 12/24/18 low. I've put a target for that low at 2242 as the end of wave A. From there a spirited rally is expected, but faces significant hurdles. They include 50d sma below 200d sma, previous highs and lows (especially 2532 and 2628). If we hit the 2242 (or lower) target in the near term, then I expect adding to my positions.
Unwinding old baggage takes time, and the current process involves baggage since the market's March 2009 low. The pivots of wave A and then B will help identify the eventual low for wave C. Right now the wide zone expectation for wave C is the range of 2077-2135-2242.
Have a Happy and Prosperous New Year in 2019! The market is presenting opportunity for wide swings in 2019. I'm looking forward to navigating the path described.
I'll keep it brief and at a high level since my last couple of weekly posts contain plenty of supporting details. I expect the current bounce to be temporary, followed by at minimum a re-test of the 12/24/18 low. I've put a target for that low at 2242 as the end of wave A. From there a spirited rally is expected, but faces significant hurdles. They include 50d sma below 200d sma, previous highs and lows (especially 2532 and 2628). If we hit the 2242 (or lower) target in the near term, then I expect adding to my positions.
Unwinding old baggage takes time, and the current process involves baggage since the market's March 2009 low. The pivots of wave A and then B will help identify the eventual low for wave C. Right now the wide zone expectation for wave C is the range of 2077-2135-2242.
Have a Happy and Prosperous New Year in 2019! The market is presenting opportunity for wide swings in 2019. I'm looking forward to navigating the path described.