One way street

The markets remain in a one way street and continue to display strength.
Our lunar Green Period will be ending today, so I am looking for market weakness in the next couple of weeks.

Let’s have a look at the current S&P 500 chart (click for larger image):

S&P 500

The market is testing the upper boundary of its long term rising trend channel. Meanwhile my Earl momentum indicator shows a very large bearish divergence and has just turned down. Some kind of correction is probably imminent.
I would look for a drop towards 1350, then probably a rebound and possible double top in April.

Stay tuned, Danny

By Dan

Author of LunaticTrader and Reversal Levels method. Stock market forecasts based on proprietary indicators, seasonal patterns and moon cycles.

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