Weekly Market Outlook: Bullish Momentum Continues

With a short week ahead there isn’t much to say other than the bulls remain firmly in control of the markets. I would expect lower volume this week as we are approaching the holiday which also means Gann’s holiday rule is in effect and the markets could see a turning point.

I said in this post back in mid October that stocks could make new all time highs by late January. At the time no one believed me. Yet here we are not even in December yet and the leading stocks and indexes like SMH are already making new all time highs. A good sign of whats to come for the lagging indexes.

At this point, I don’t want to get in the way of this market trend. There is plenty of Gann analysis and seasonal data to back up our case that I have shared with you over the last several weeks.

Taking a look at the S&P

We can see the breakout of the blue downtrend line. This level now becomes support and also coincides with the two fibonacci lines around the projection I have drawn. It would make sense if the market pulls back to around those levels. That would be your chance to get long before an even bigger rally unfolds into January.

Turning to the Dollar

Here we are hitting a big level this morning (the .5 fibonacci level) which is likely to act as support. A break below this level will signal further downside but for now it’s an important level that can stall this drop out for a bit.

Now for BTC