New highs again
Posted by Danny on December 22, 2014
Markets have rebounded swiftly from their recent dip. Several indexes are close to new record highs again. Is there no end to this bull market? There will be, but just not yet.
Let’s have a look at the S&P 500 (click image to enlarge it):
The S&P has bottomed just below the 2000 level we expected. The upward trust from the low is now even stronger than what was seen after the October low. As I have said before, a lot of investors who missed the boat are still looking for chances to get in.
Technically the Earl indicator has put in a major low and is nicely going up. The slower Earl2 has not bottomed out yet, which means a second dip is still possible. The MoM has also bottomed out. By January we could see a bullish setup in all our indicators. A second dip to 1900 is possible, but I wouldn’t be surprised to see the S&P climb above 2200 in January-February.
More on that in my preview for 2015.