Battle Lines Drawn
The bears made their first stand of the nascent rally on Friday as very early strength was immediately sold. The best thing about this is that we now have a few common sense lines in the sand drawn to determine short-term direction. You can see below that the most recent price is smack in the middle of the four lines. A CLOSE above or below the two closest lines to price will likely create a quick and sharp move in the same direction to the next line.
My theme remains the same. I believe that stocks are in the bottoming process right now with a big rally coming. I also think there should be a better buying opportunity later this week or next. HOWEVER, I remain firm in my forecast that if stocks race straight back to new highs from here, the bull market is likely to end in Q1 of 2019. How’s that for a binary outcome?!?!
