Haven't posted for a while. Currently busy to set up an automated trading system in the FX market. You definitely learn a lot from that.
It's still tough to make a call on the direction of the stock market. Overall I'm still more on the bullish side. Many bloggers expect an top or at least a correction rather sooner than later. If you check the 'fear index' VIX or the put/call ratio they both tell you the same: The market sentiment is still on similar positive levels as a few weeks ago, maybe slightly more negative but the market continued to go higher. The S&P is currently in a rising wedge. In my opinion it will definitely not break the upper support line of this wedge before a correction will hit the market.
The good news for the bears thus is that - assuming that the correction comes with the break of the rising wedge - firstly the SP500 won't rise above 1420 before the correction and secondly that the correction must start before April arrives.
The more distribution days (days with lower closing price and higher trading volume compared to the previous candle) the more likely the formation of a top. So far we've only got one. We shall soon find out...
It's still tough to make a call on the direction of the stock market. Overall I'm still more on the bullish side. Many bloggers expect an top or at least a correction rather sooner than later. If you check the 'fear index' VIX or the put/call ratio they both tell you the same: The market sentiment is still on similar positive levels as a few weeks ago, maybe slightly more negative but the market continued to go higher. The S&P is currently in a rising wedge. In my opinion it will definitely not break the upper support line of this wedge before a correction will hit the market.
The good news for the bears thus is that - assuming that the correction comes with the break of the rising wedge - firstly the SP500 won't rise above 1420 before the correction and secondly that the correction must start before April arrives.
The more distribution days (days with lower closing price and higher trading volume compared to the previous candle) the more likely the formation of a top. So far we've only got one. We shall soon find out...
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