Stock Market Technical Analysis
The stock market is making new highs in 2 years. Yes we have come a long way if we look back at those dark depressive days of December 2008 when nothing, nothing was working right. There was a complete mood of depressive psychosis that the world was ending. Markets were being sold off as if there will be no tomorrow. I remember those days very well. I was standing here….how about you?
But look where we are today. “Its a long way to the top” to quote AC/DC Rock band. We are here making fresh new highs under this new administration run by President Obama and his policies that have been chastised from the right. Charts don’t tell lies, they tell a story, the truth. If it was not for these people we would still be in that hell hole of December 2008 and some of us would have been grazing sheep in the pastures instead of trading from our cushy laptops. I don’t mind grazing sheep wearing a tattered parka and freezing my butt in the cold, I have nothing against it either, but I can’t make money and feed myself with it, as I would like to.
The market has reached its 61% Fibonacci Retracements a key level here. Traders are watching this rather nervously, and that means we have retraced 61% of the losses just under 2 years from that hell hole days of 2008. This is a quite an achievement by itself. Its not by chance, its by design. The policies that were put forward in 2009. The market is now poised to break out from here as we are completing a “cup and handle pattern” on $SPX and there is no resistance to the left. How far that will go, its just an estimate.
So enjoy the day, so enjoy the sunshine and once again those prophets of doom and gloom have bit the dust again.