Let’s check what’s going on with the DJIA and S&P500 right now. As we all now we’ve had quite a big move upwards lately, not only in USA but around the world in general. There’s nothing new I can say about that but I’d like to discuss what’s next.
The market goes up and down, that’s a fact so after a big move up we have to have a move downwards and that’s what I want to discuss and talk about. Are we close to it? Or do we still have some space?
The situation for both DJIA and S&P500 it’s pretty much identical. Both of them broke upwards with very similar patterns and have been going upwards for the last days. It’s true that in the last couple of days we’ve seen less volatility and the trend is not in such a good shape. However I think there is still some space for the market to go upwards, not too much, around 1% from where we are right now. I’d say around 2130’s for S&P and around 18350 for DJIA. The resistance is still a bit far away from us and the oscillators still have some space to take some more inches upwards.
Does this mean we should be opening longs or stay long in the market? No, I would not open long positions. And if I was long in any of these markets I’ll take this as a ‘I should start thinking of closing my position’. It doesn’t mean you should rush and take your money away because bad things are here already, but it does mean take it as soon as you see a good chance because time for a correction might be close.