Sep 21

Weekend Outlook for 22th September 2014

So far so good – after markets had a slowly move down from 2011 to 1970s where I shorted mkts , I saw a potential bullish pattern forming. The other thing is that the decline looked very “corrective” which means there was not enough power to the downside of the move. This suggested that it was more like a consolidation phase before another rally higher and this is what we got.

SPX at all time highs into weekend and I would expect a large rally higher still in the coming weeks.

1. I expect SPX to hit the upper range of 2000s before topping out

2. I expect Dow Jones to reach possible 18.000 before we top out in the coming weeks.

3. Gold has been very weak and I did not expect so much weakness in gold prices. Miners however have been doing a lot better than the price of gold lately. Gold must hold above the black trendline on chart.

Conclusion: The conclusion is that most of the big events is behind us now and mkts might see a slow grind higher in the coming weeks ahead. This is what I expect some sort of short covering rally where we grind higher with Dow Jones likely to hit 18.000 in coming weeks.

As long SPX remains above 1980 I remain bullish and long mkts.


No comments yet.

Add a comment

(it will not be shared)