Market view

Markets dropped a little more - especially weakness in the Nasdaq which lead the markets down. But remember tech and nasdaq stocks has been the strongest when we moved up - which is why they also gives big hits when we move down like we saw yesterday. From what I know the sentiment is getting extreme bearish at the moment - AAI sentiment from last week gained 3.6% bears and lost -4.7% bulls, now we have more bears than bulls , which is a good sign for some fuel to get markets going again.


Sentimenttrader also have a lot of pessimism in the short term , which means usually a short term bottom is near - that also stand by what I am thinking. If you take a look at the DOW - it was only down -0.4% , nothing biggie , and we are STILL above KEY support at 12.500 - NO reason at all to get bearish as long dow jones holds above this area. We could test it at 12.500 and then make a big rally to 13.000 - but we may also rally from this point.

I think time wise I've had a target for the rally to begin by Mid may until end of June - so if we are going to rally - we should start going THIS week or very soon... so be prepared - I'm fully long markets and added SPX 1329 range.

If you look at the dollar and euro - the euro made a bullish harami pattern and dollar made a bearish harami - which both makes me confident that euro is going to rally soon and dollar going to pullback - which means markets is going higher !

If we take a look at XLF - financials broke out big and then have been trending down with a bullish MACD divergence indicating a good rally is to be expecting in the financials too. KBE (Banks) made a inverted hammer which is a reversal bar so lets see if financials starts to rally very soon , thats what I am thinking. A good way to play it is FAS which is 27.63 currently (it might see 34+ next )

Everyone also talked about AAPL going down so much - well nothing to worry about yet - AAPL was overbought and broke down of a base going down to long term support around 332-333 lets see if this doesent hold... Lots of other bullish signs with PBR and CLF making bullish reversal patterns too - everything lining up for a good rally to come, just ignore the news and follow and read the charts.


Overall my objective target is still 1380 on SPX and 13.000 on DOW Jones next - so buy the dips as long as 12.500 holds on dow jones. As you know I was calling for this pullback when everyone was bullish at 1360-1370 and I had a target of 1325-1330 , we are here now and my analysis and timing tool says we are going to rally to 1380 next over next weeks.



Have a nice day