As expected, S&P 500 surprised most of crowd by breaking the downward trend line to the upside today. The question is how long and how high will this rally go? A couple of scenarios:
1. The bull scenario or the green line, after testing the upper side of the trading range, the index breaks to the upside and retest April top
2. The bear scenario or the red line, after failing at the upper side of the trading range, the index breaks down to complete the giant almost 12 month head and shoulder top.
3. The more bearish scenario. This scenario is not painted here, but under this scenario, the index touches 1000 and turns back down.
So which scenario will be true, the answer will be revealed soon, and the key is whether you can recognize the hint of the answer not very much but just a little sooner than the other people, that's what I think is the key to success of investing.
No comments:
Post a Comment