To The Moon

Steady at cruising altitude while awaiting next move

Monday saw the markets $DJIA(.DJI)$, $NASDAQ(.IXIC)$and $S&P 500(.SPX)$not make much moves in either direction. After an exhilarating soar from the bottom in the past week culminating in Friday's surge upwards, the markets took a deserved breather amidst lighter volume. 

Investors are understandably cautious amidst the macroeconomic picture as well as participation in a potential bear market rally. Hence thelight volume. Many are wondering if the market has legs to rally more upwards and do not want to overcommit. 

I believe the market will take a short breather and dip slightly to around 3860-3890 region before taking another shot at around the 4000 region before it stalls. 

Two scenarios

1. The current bounce fails at current levels, breaches 3800 and possibly take another leg down.

2. The market holds at around 3850 and makes another rally upwards to the 4000 level.

I believe the market might take another shot at 4000 before stalling and falling back to around 3800-3900.

These are based on Elliot waves calculations and are in no way concrete or predictive. They just try to ascertain possibilities and help us make decisions when it comes to investing.

Stay safe! 😊