The USMAI is navigating a correction trend within a Bullish Zone

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The USMAI, representing the average index of the U.S. stock market, is currently in a corrective phase. This adjustment trend is expected to continue within the bullish zone until the first week of January 2025, characterized by a gradual and moderate pullback. Should this trajectory hold, the market is anticipated to transition into the bearish zone by mid-January, with a broader downtrend taking shape as the correction deepens.

Over the past two weeks, there have been no significant changes to the forecast. If the next two weeks do not witness a strong upward movement that breaks beyond the projected range, the outlook is likely to remain consistent.

Long-Term Strategy: Buy and Hold

Bullish Zone Analysis:
The Bullish Zone divides into two sub-trends:

1. Uptrend: Dominated by strong upward momentum with intermittent downward corrections.

2. Correction Trend: Characterized by short-term downward adjustments within a broader upward trajectory.

Strategic Insights:

• Current Position: Buy and Hold.

  • Focus on long-term investment returns by holding assets through market fluctuations.

  • The Bullish Zone supports a low-risk environment with high return potential.

  • Selling is recommended only when the trend shifts into the Bearish Zone.

Conclusion

The USMAI is navigating a correction trend within a Bullish Zone. For long-term investors, the Buy and Hold strategy remains ideal as the broader upward trajectory continues. In the short term, a Sell (Bearish) approach is advised to capitalize on current price levels before anticipated downward adjustments.