I have been pretty bearish on the US stock market trends last month. I also initiated a few stock counters to short in this bearish market. Though there was moment that the market big boy kicked me out at my stop loss. There was also moment that I decided to take profit as well after the advance of the market last week.
However, how is the market outlook now?
I am now changing from bear to bullish now. Why do I say so?
Well, I pulled out the chart of Dow Jones & S&P500, I observed a similar pattern. Both of them appear to form an ascending triangle now. Ascending triangle is a signal of beginning of bull trend. What we need to observed is the resistance level during this ascending triangle.
The moment it break this resistance level, the market can continue its uptrend. One critical point to observe is the volume, we need a high volume during the breakout. Just like a rocket, we need to have enough fuel to shot up into the sky. Similar analogy apply for breakout on assending triangle and the fuel is the volume.
S&P 500 Stock Market Trends Outlook
Dow Jones US Stock Market Trends Outlook
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