Waiting for direction

Stock are retesting their recent lows. The market has been going sideways since November and will probably chose a direction soon, up or down. As time passes by and my indicators line up in bottom territory the odds increase that the next move will be to the upside again. Let’s have a look at the S&P 500 (click image to enlarge it):


The 2000 level has become an important base support. If it gives way then the S&P 500 will probably trade down to 1900 very quickly. It is too early to discard that scenario, but eventually a rally will start in the ongoing absence of a real break down. We remain in a lunar green period and all my indicators have fallen to low levels from which a move higher can be started.
We just wait and see which way it goes. It looks increasingly likely a rally is up next, but there is still 30% chance for a deeper pullback first.

Good luck,

By Dan

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

Leave a comment

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: