After the sharp rise from the October lows for all international markets, we have now come under significant resistance, and a phase of technical adjustment is awaited. What to expect from now on? A new bearish reversal preparatory to new lows or new rises?
What are the indications that come from our oscillators and from the study of historical series from 1898 to today?
At the moment there are at least 3 reasons why Wall Street can continue its upward movement:
- October lows tend to carry upside through the end of April;
- the rally that started on the October lows hardly stopped in November;
- the low marked in mid-October could be the ten-year low:
The trading close on 18 November took place at the following prices:
Temporary break for the Christmas rally?
Between today and Wednesday some monthly setups will expire, and in these days it could be retraced by 1/2 percentage points before new increases.
The levels that will keep the short-term upside intact
Very short bullish trend until there is a daily close below 33.540. Lasting declines only with this week’s close below 33,239.
Very short bullish trend until seeing a daily close below 11.006. Lasting rises only with the closing of this week below 11.006.
Very short bullish trend until there is a daily close below 3.906. Lasting declines only with this week’s close below 3,906.
3 reasons why Wall Street can continue without particular problems
As usual, nothing can and should not be taken for granted on the markets. These are watershed moments to understand if the historical series will be right as indicated in the first paragraph, or this time the minority of cases will be followed by starting a bearish phase until the end of December at least.
For now, investing upwards in stocks seems to have more odds in favor.