US bulls unable to wake up and markets preparing for a crash? Actually, no. As highlighted in our Dec Part 2 Outlook, the US indices are just having bull market corrections. Feel free to read further on for more information.
DOW JONES INDUSTRIAL AVERAGE
According to Chart 1, the Dow is still in a bull market correction mode as highlighted by MACD since Dec 3. Consequently the market fell to 15,755 pts as of Dec 13 closing. Based on latest prices, the Dow could have a correction to either 15,543 or 15,092 supports. Keep in mind, the Dow is not going for a crash; instead it is just a healthy bull market correction as prices is still trading above the red moving average.
S&P 500
The S&P 500 still in a bull market correction mode since 21 Nov when day MACD formed a deadly cross (refer Chart 2). Consequently the market fell to 1,775 as of Dec 13 closing. Based on latest prices, the market could have a bull market correction to 1,734 support or just above this price. That being said, the S&P 500 is not going for a crash or bear run as prices are still trading above the red moving average.
NASDAQ 100
The Nasdaq 100 entered into a bull market correction mode when MACD formed a deadly cross on Dec 12. Consequently the market fell to 3,456.4o at Dec 13 closing. The market could have a strong bull market correction to either 3,300 or 3,127 support as long as day MACD still showing bull market correction mode. That being said the market is not going for a crash; instead it is just a healthy correction as prices are still trading above the red moving average.
David Lee
(Futures commission broker & equity remisier, Contributor of futures market trend following)
THE THREE /// LINES TRADER (TFM) 