Thursday, 4/27 8:30 am EST. Well, it’s Thursday… On Wednesday, common stocks closed down, and the metals up.
This morning, I see the metals down, and stock futures up a bit. It’s a see-saw, rollercoaster ride. I own metals and miners, and I own stocks. I have a stock blog here: https://dividendgrowthinvesting.wordpress.com/ Feel free to peruse that, if you would like.
As I noted previously, almost nothing broke price support levels with Tuesday’s smash, and Wednesday kept prices above those nearest-term support levels. Today, they might fail, but as I had written, I would actually expect them to, and I would almost welcome that, as it is necessary, after the December to February run-up, the Feb to Mar decline, and the now broken, mid-March into mid-April rally… all of which have been eking out a bullish higher low kind of price pattern, needs to digest/correct and/or consolidate the most recent gains from mid-March; which it all appears to be doing.
The real need, at this point, becomes… that the March lows hold, so as to create a double-bottom support and launching point, and even more particularly, we absolutely must have the December lows to hold. These are the 2 primary previous support levels that all eyes will be upon.
IF, the very nearest-term support level, established by the March 15 pop-top, which is that level that has held Tuesday and Wednesday, should continue to hold… there’s going to be a level of excitement to likely come to this market, that really ought to create the kind of positive buzz, that I would expect would result in a substantial rally move within the next month, and probably no more than 2.
This, of course, is prognostication, and remains to be seen. But, this is always the thing I try to think through, and to project, so as to see if it might not come to fruition on the basis of what would seem like some pretty logical ‘reading’ and ‘interpretation’ of that which the charts would seem to imply. As always, predicting, especially the future, is very hard… so said Yogi Berra.