Sometimes a bold call is necessary and this is one. The market appears coiled to spring rapidly higher after a week of extreme ups and downs.
My conclusion is the January move upward was an aberration from euphoria over the Tax Bill passage. An otherwise expected 8% drop timed for January was slightly delayed until late in the month and carried to the expected lower target near 200 day sma. The euphoria led to a decline > 10% and a technical "correction."
A "V" shaped recovery likely began of the 2533 low on 2/9/18 and should start the next wave upward. It won't be straight to new highs and a pause at 2750 is expected.
Fear indicators are at extremes and lead to conditions for significant relief and upward price movement. MACD and RSI are shown with comparison to earlier declines. Anecdotal technical information and positioning reflects investor fear going into the weekend. Those positions and fears should ignite a sharp upward move when they prove unfounded and are unwound.
My conclusion is the January move upward was an aberration from euphoria over the Tax Bill passage. An otherwise expected 8% drop timed for January was slightly delayed until late in the month and carried to the expected lower target near 200 day sma. The euphoria led to a decline > 10% and a technical "correction."
A "V" shaped recovery likely began of the 2533 low on 2/9/18 and should start the next wave upward. It won't be straight to new highs and a pause at 2750 is expected.
Fear indicators are at extremes and lead to conditions for significant relief and upward price movement. MACD and RSI are shown with comparison to earlier declines. Anecdotal technical information and positioning reflects investor fear going into the weekend. Those positions and fears should ignite a sharp upward move when they prove unfounded and are unwound.