All you hear is the bad. There are no jobs to be found, and that's just the start! The country is about to get into real trouble! Maybe A double (or triple, quadruple, whatever it's up to now) recessions are looming around the corner. Iran has just fueled its first Nuke plant, and vows to be mean if there are any actions against them! the market hasn't hit a new high lately, and of course, let's not forget the Hindenburg Omen, which is splattered across the financial publications both online and in print.
I think we are in serious trouble on that front, but I am a short term market timer and try to map out what will happen in the next trading ranges, rather than the next few years. I am pointing out that the negatives are stacked pretty high here, yet the market is not in a rush to crash, at least not yet.
We are SMACK In the middle of the 3-month range. As the chart above shows, the 50% Fibonacci retracement held both at the beginning and end of the week. We now want to see a trade above Friday's highs to put the bounce back in the Bull's step, at least for the short term. If not, and we trade below last week's lows, we open up the case for a push down to the next Fibonacci level.
I still believe we are in a rotating (range bound) rather than extending (directional) market currently, and until proven otherwise that's how I'll be looking to take advantage of it.
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