FCPO is in a bull market correction mode as covered in our FCPO Dec Part 2 Outlook. Consequently, the market fell from 2,666 (Monday’s opening) to 2,561 as of Friday’s closing. Good job FCPO trend followers for enjoying this bull market correction, it’s all thanks to your own discipline and understanding in trend following.
According to Day MACD (refer Chart 1, above), FCPO still in a bull market correction mode and with support 2,600 broken, the market could have a further bull market correction to either 2,545 or 2,468 support.
Keep in mind, FCPO is not going for a crash because prices are still trading above the red moving average of 2,468. In other words, FCPO is just in a bull market correction phase and will resume it’s bull run ONCE day MACD forms a golden cross.
Similarly like what happened on June 25 2012, FCPO formed a yearly bear run signal, but the strong bear run does not come immediately; instead the market had a slight retracement to the red moving average at that time before continuing it’s strong bear market correction. So trend followers, you know what to do, repeat the good work that you had been doing and follow your trading plans. Follow the trend well.
David Lee
(Futures commission broker & equity remisier, Contributor of futures market trend following)
THE THREE /// LINES TRADER (TFM) 