US bulls are still taking a nap for the time being and consequently 2 of the indices are in bull market correction mode now, as discussed in our Nov Part 3 Outlook. Continue read on for more info.
DOW JONES INDUSTRIAL AVERAGE
The Dow formed a MACD deadly cross on Dec 3 and consequently it is in a bull market correction mode now based on Trend Following strategy. The index could have a correction until either 15,478 or 15,027 support. Keep in mind the Dow is not going for a crash (yearly bear run) as it is still trading above the red moving average.
The S&P 500 is still in bull market correction since Nov 21 Day chart’s MACD deadly cross. The index could have a bull market correction until 1,735 support level. That being said, S&P 500 is still in a yearly bull run as prices are still trading above the red moving average, so it’s WAAYYYY to soon to say CRASH is coming.
While both the DOW & the S&P 500 are in bull market correction mode, the Nasdaq 100 is is in a Bull market rally mode right now since Nov 26 Day MACD golden cross. The Nasdaq will continue it’s bull market rally mode, regardless of whatever happened to the Dow & the S&P 500. It will only have a bull market correction IF day MACD forms a deadly cross.
(Futures commission broker & equity remisier, Contributor of futures market trend following)