sp'daily8 - Ichimoku
sp'monthly7 - Ichimoku
Summary
How long can this new rally phase last?
In my view, its going to be at least another 2 or 3 months until the market will have its first chance at anything more than a 2-4% correction
By late April/early May we could easily be trading in the sp'1600s.
Lets assume we battle all the way to the sp'1650s.
Even a 9% correction..will only get us down to the 1500 level. Just imagine that.. 1500 as the 'new floor', lol
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The monthly chart offers cloud support @ 1200s. Does anyone seriously think we have a chance at breaking down to that level this year?
Frankly, assuming the POMO program continues, I think bears will be lucky to see sp'1400/1350..and that's only if the market gets briefly 'spooked'.
Valentines day (bear) massacre?
We have a major 4-6bn POMO tomorrow. We closed @ sp'1520, and it would not surprise me if we are trading in the sp'1530s.
However, if bears can 'somehow' get this market to close moderately in the red tomorrow - despite the POMO $, then there is again a tiny chance at a retracement. Yet, even then, the 'best hope' is now the 1480/70s, which barely rates as even a moderate drop.
I have my eyes on the metals and the Oil/energy sector. I'll be looking to go long on those within the next week or two.
Goodnight from London