The low in the stock market in December 2018 was a major technical spring in a huge trading range/accumulation area in an ongoing secular bull market. This was discussed here way ahead of time in a subscriber post from 11/14/18, and this is how it played out with the break in December, a major spring (shakeout). So as we have had an outstanding broad-based rally, and are starting to close back in on a big res area, what did I say back in Nov about how a major low would play out:
So bit bigger picture, plus near term, we have the total bickering fighting investigating power grabbing for the next 2 years and beyond actually with the new crop of clowns into the Congress, that setting the stage for consistent volatility in markets, along with the higher yields, tariffs, and then oil getting clobbered. A traders stock market. None of this will kill the secular bull, I discussed a lot of this stuff over the years, have expected the general tone and trend of where we are headed, was aware of these types of things when I did this post many years ago as to my extreme bullishness for the long-term stock market. That belief takes into account a USD losing at least “unofficial” reserve status.
And near-term, the stock market does not like rapidly falling or rising crude oil, so a rally in crude, a bounce in JNK would provide another rally opportunity in stocks. Crude put in some very heavy volume at the lows yesterday, (#1 EA only) last chart below.
Sort of intermediate-term, the way this bigger area sets up to me in SPY is we have got to have a big rally out of here, up to the 281 big bko area, and then another big selloff, maybe another spike lower low spring, then we should have set up a lot more stocks in the meantime.