To The Moon

When the apple drops......

Monday saw the markets $DJIA(.DJI)$, $NASDAQ(.IXIC)$and $S&P 500(.SPX)$start off strong on the back of the strong showing on Friday. After Goldman Sachs posted strong earnings and bested analysts' expectations, the markets seem ready to roll on upwards. However, $Apple(AAPL)$put a dent in the sails and considering the levels they were approaching, it was no surprise to see them retreating once news of Apple reining in spending on expectations of lower demand. 

As such, the SPX retreated from the 3900 levels that have proven very resilient again and again. And on their way they make again lower to find stable footing before another venture to actually break the 3900-3950 levels to set offon a merry rally upwards hopefully. 

I believe the SPX will 

1. Touch 3800 and rebound off it to rally upwards towards the 4000 levels (In this scenario, bottom has been achieved in the previous low)

2. Dip lower towards the 3720/3650 levels before rebounding in a double bottom scenario

3. Wash out to 3500 levels to find a bottom and stable footing or base to rally from

As such, how the market behaves in the next few days is crucial in assesing the market's strength and assessing probabilities as to where the market might head in the near term.

My own personal opinion is the market is ready to put together a sustained rally and if you have funds on hand to put to use, the time might be near to utilise them.

Stay safe 😊