So are we due to correction?

Thanksgiving has been a very positive for the markets , especially on Fridays. The fact the last Friday ended red has been a poor suprise for seasonality traders and bulls as well.

I consider Friday action as a try to minor the damage for the bulls as relatively they did pretty well.

The overall picture remains positive. Take a look at the new 52 NYSE lows which is running on 10 for several months and this pattern is very typical when bottoming.

Good trading

Houston, Do we have a problem?

The market grinding up as only the expiry week had the ability to temporary halt.

The image below shows the market resistance with the downtrend line stretched from 1550 area.

So what can we do now? The market can start a correction but the uptrend is Not yet violated.

Good trading

Market review

The bears once again have felt the dominance of the uptrend as market recovered from 1035 area to a new year high 1102 area.

While this rally don't have the strong momentum of the last one , it appears that uptrend is still intact.

In the image below, S&P500 weekly cash index. The analysis is very simple. The price should not be below the 65 EMA which represent our benchmark. As long as the price above the 65 EMA , the trend is up.
As you can see over the last years , the outstanding efficacy of this simple indicator.

Updaed performance plus market review

I haven't updated the site for a while and the reason was very poor market conditions.
The risk reward wasn't at our favorable ratio.

Many analysts , especially Elliot wave ones ,expect a down wave C to new lows , below 660.
We encountered a V structure bottom pattern which is very rare. My analysis shows that a new uptrend has begun since 980 area.
As long as 980 is not broken , The uptrend is still intact.

Please take a look at the updated performance page.