Well, perhaps not "up up and away", more like sauntering up a rolling hill. But the point is there - all major indexes moved in-tandem (et al minus the USD of course, which is virtually the only thing that will be moving counter to the bear market, as we have been saying for months).
Here's the latest forecasts on the S&P500 (we thought we'd switch over from the Dow for today and look at broader measurement). The retracement might actually have ended butting right up against the primary resistance line (double top a few days ago before the final low). The number one scenario we are looking at is a spike up at or near the open to breakout, then a quick retracement below the line to resume the bear market.
Secondary scenario is a continuation of the slower, steadier upward move, which could take us up to two different ideal support levels.
Ideal stop-out is listed on the chart.
Gold and silver should follow the markets, and at this point, a day in which all markets make a decent low for the day while the USD rallies is a strong indicator that the major downtrend has resumed. This portion should be faster and of greater magnitude than the last, as more positive sentiment is wound out of the market particpants.
Financial advisers the globe over are still "long-term bullish" on stocks (would you really expect anything different from the guys selling you long-only mutual funds?), and citing that this is a much-needed correction so that stocks can resume their bullish run.
Unfortunately this mentality is prevalent in the initial parts of a major downturn - remember what people were saying a month or two in after the 2007 top? Did you know we had just witnessed the highest stock prices we might see in over a decade?
We'll be back for more analysis tomorrow. Have a good night!
Derek.
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