Following are the reasons why bottom is near and should happen soon:
Time Target:
Decline Price Target:
1250-1260 (SP500)
Buy Signals:
Sentiment:
Reaching pessimistic extremes
EW Structure:
One more decline to test or break today's lows by the end of the week.
Conclusion:
We are very close to a near term bottom, but that does not mean that the bear market has ended. In fact, it has just begun. Upcoming rally can last for 3-4 weeks, but will be followed by further decline.
Time Target:
- IPM Turn Window: June 8, 2012 (+/- 4 days)
- MFI based time signal: June 7, 2012
- Cyclical turn: 2nd week of June
Decline Price Target:
1250-1260 (SP500)
Buy Signals:
- Euro Bottom
- Gold bottom
- Vix based buy signal
Sentiment:
Reaching pessimistic extremes
EW Structure:
One more decline to test or break today's lows by the end of the week.
Conclusion:
We are very close to a near term bottom, but that does not mean that the bear market has ended. In fact, it has just begun. Upcoming rally can last for 3-4 weeks, but will be followed by further decline.
Thanks Naqvi. I did some buying at 1270 S&P and hoping to make some cash! I actually bough the UPRO which is a 3 times bullish ETF. I bought 2 days ago and pretty low. I'll sell it when it reaches S&P reaches 1400, which that maybe by end of this year. (Knocking on wood).
ReplyDeleteJoseph
I am not exactly clear on your forecast. Are you saying we rally from June 8 for as much as 3 to 4 weeks? We retest the 1267 bottom this week and rally from there?
ReplyDeleteYes. Once the market bottoms this week, it will most probably rise for the next 3-4 weeks. As far as the bottom is concerned, market has either bottomed or will bottom soon. In any case, we are in a buying area.
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