WHAT WE DO? WE SELL OPTIONS FOR INCOME. WE USE THAT INCOME TO BUY DIVIDEND GROWTH STOCKS!
CHECK OUR TRADES ON OUR FACEBOOK PAGE OR HERE.


What’s next?

The market created a reversal hammer candle last Friday and retesting the 2600 support. Since then the markets rallied higher.

Today, we broke a triangle resistance and we also broke above the previous lower highs resistance which I deem as a very good sign for this market.

Now we still have a few resistances to break.

One is a resistance slightly below 2720 and a larger triangle at 2705. If both resistance get broken I expect a rapid move higher to 2800 level. This will be fueled by short squeeze as unbelievers will rush closing their losing positions and those who sold the market (sold low) will rush to chase the market (and buy high).

 
Next S&P 500 trend
 

This can take another month to develop in my opinion which would mark a third or fourth month of recovery (remember my older posts where I posted that in the last 20 years, it took the market 1 to 6 months (or 1 to 3 months in average) to recover a 10% correction and create a new all time highs. If this develops as expected, it would be 4 months of recovery.

However, I also expect that this market has about 2 years (well now only about a year and a half) of bull trend, then we may see a bear market rolling in. One reason is economic data as the world economy is showing signs of slowing down.

I think beginning or half of 2019 the market may look completely different. But who knows, my crystal ball is a bit foggy to predict the market…





Leave a Reply

Your email address will not be published. Required fields are marked *