This week is going to be critical in cementing the arrival of Surge7 and the resumption of the Up Trend. Here are key events for this week that may function as either positive or negative catalysts.
Interestingly, according to Bloomberg, JP Morgan just joined Bank of America, Goldman Sachs and other major investment banks in telling clients to start buying stocks again. They cited the following reasons:
Our readers had an early heads-up about this possible bullish turnaround. In our analysis posted on Wednesday evening 8/28, we explained why we think Major Pullback2 was winding down and Surge7 was likely to arrive soon.
Stock market actions are only loosely based on economics. They are much more tightly coupled with the twin emotions of greed and fear. Various events tend to function as catalysts, but it’s the underlying emotions and psychology that will drive the reactions, and ultimately the directions of stock prices.
Obviously it’s hard enough to analyze market events, much less deciphering market emotions. This is why we based our trading system on market internals. These are the highly reliable indicators of what’s really going on under the hood for stocks. And right now, market internals are saying “we are bullish with some caveats”.
The rest of this article covers:
Table of support and resistance levels
Updates from market internals
Planning your trades
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