Market Roller Coaster

The bigger picture of the market is just full of slow rising moves then sharp drops so are you ready to ride the Market Roller Coaster ?

Well don’t get too excited because US indices still within the same levels from last year !! Now that’s how you establish a good range with strong  resistance & support which is tradable as you can set your limits beyond that box but the better trade would be a breakout in either side !!
As we mentioned in january the sharp drop we had around the market is just another opportunity to go long and we expected the bounce move to end around this time of the year ( April ) and we did mention that it could extend to new highs which didn’t happen for now so it’s reaching the point where major indices are pointing for another drop with different degrees but it will end up as another deep to buy it later on !!

The 3 major US indices ( S&P , Dow Jones , Nasdaq ) are the strongest which explain why it kept its range while others broke down , so now reaching the extreme side of the range will represent another sell opportunity to target the lower bound of it with stops  just above the highs . Later on we’ll reassess the situation but we are expecting another bounce from the support area .

Jumping to the rest of world indices which is correcting the whole cycle from 2009 lows , the recent bounce is just a shallow one compared to the one above and it also represent a selling opportunity for a continuation to lower targets located on strong support areas that will probably hold for at least a bigger bounce !!

These are corrective moves that could extend further so the best way is to ride the roller coaster up & down when there is a really great risk / reward setup .  All these scenarios will invalidate if indices make a strong break to the upside and every index is different in structure but it’s all the same move with different degrees so you better make a good plan to trade it !
Also remember the top could take few days / weeks to appear so don’t worry if you miss it there will always be another opportunity around the corner waiting for you !!

 

AlienOvichO

Full time Trader & Analyst