Market view

Markets consolidated sideways yesterday and where a quite boring day with stock markets as we closed FLAT......

The thing is , when markets is running higher like we did lately AND we consolidate sideways , this is USUALLY a bullish sign which is continuation pattern before we breakout even higher.

Seems like most bears did NOT catch this rally as I did from 1078 on SPX level and still long the markets until I get sell signals.

Usually markets would pullback after more than 100 points run in SPX - but this can also indicate that what we saw , was THE bottom - (a very STRONG PUSH UP, with no pullback) before later - this means that markets is making the first "leg" higher in a bigger trend up which I think.

So markets is right now in the first move up from the lows 2011 imo before a bigger pullback could occur.

Right now a pullback is imminent still imo - but will we have a push higher ? Or just pullback from here , thats the question.

The 30min and 60min chart both indicates that the pullback should start today ( but did also this yesterday ) so remember - we can stay OVERBOUGHT short term for days before a real pullback comes in.

Bulls are in FULL control as long we stay above 1170-1175 where I think the pullback we will get could go to - the MA(50) which markets broke above lately.

Conclusion:

Not much to say - the same as yesterday - pullback is imminent as we are overbought , would not be surprised with a pullback soon , but sideways consolidation tells me we may push higher before.

All in all - bulls in full control as long SPX holds above MA(50) and 1170-1175 level - no reason to short markets - but just stay long and play the good "long setups".

Some markets out there looks extreme bullish pattern wise on 5 year chart which indicates we might even see new highs and much higher sometimes this year or next year...... so remember ANYTHING IS POSSIBLE - DONT BE SO FOOLED TO LOOK ONLY THAT WE CAN GO DOWN LONGER TERM... ANYTHING POSSIBLE..

I'm not saying we will take out new highs on this rally - but I think there are some chances we will and if not a rally to 1300 area is still a major rally from call at 1078.

I remain long EDC 11.75$ swing trade around SPX 1080 level.


Remember I wont make updates from this Friday and will be back again Wednesday next week as I'm going on vacation in the mountains.