It took about over 3 years for markets to go from the current level to the 3400$ mark where it peaked. What is interesting is, it only took less than 3 weeks for markets the correct the whole rally. The Elliot wave showed a potential top around the 3300-3500 mark. I had called for a top around this region early Feb 2020 (please refer to article published in Feb) even before the Corona pandemic.
The ABC correction of the rally ends around the 1800-2000 $ mark and markets are lingering around those levels. Markets can breach those levels. Once the pattern is complete, a bullish reversal can be expected. Still, instead of trying to pick the bottom, I’ll
stay aside and wait for the diagonal to fully form and then for the reversal to actually occur before joining the bulls.
The corona virus pandemic and the economic recession it is causing are far from over, but think about this: World War II lasted from 1939 to 1945. Yet,the stock market bottomed in 1942 and then rose steadily during the last three years of the war. Also, the world was in a recession during the entire 2009, but the stock market started rising in early-March 2009.
The ABC correction of the rally ends around the 1800-2000 $ mark and markets are lingering around those levels. Markets can breach those levels. Once the pattern is complete, a bullish reversal can be expected. Still, instead of trying to pick the bottom, I’ll
stay aside and wait for the diagonal to fully form and then for the reversal to actually occur before joining the bulls.
The corona virus pandemic and the economic recession it is causing are far from over, but think about this: World War II lasted from 1939 to 1945. Yet,the stock market bottomed in 1942 and then rose steadily during the last three years of the war. Also, the world was in a recession during the entire 2009, but the stock market started rising in early-March 2009.