BeforeItsNews only exists through ads. We ask all patriots who appreciate the evil we expose and want to
help us savage the NWO with more Truth to disable your ad-blocker on our site only so we can grow and expose more evil! Funding
gives us more weapons! Thank you patriots! Oh and If you disable the Ad-blocker - on your deathbed you will receive total
consciousness. So you got that going for you...which is nice!
% of readers think this story is Fact. Add your two cents.
The Asian markets were up. But Europe gave up its gain. As of now futures indicate weak open. However things can change by market open. A weak open and then a snapback might be better than a gap.
Markets have been in correction mode for last couple of weeks. Prior to correction market was up about 30% in 6 month. So a correction of 5 to 10% will not be out of character and is in line with historical precedent. As of yesterday the correction was around 6 to 7% if calculated at low point.
Such correction results in stocks that had gone up a lot or leading sector giving up their gains and a new stocks and new sectors taking on leadership. That is the nature of markets. Momentum bursts last for few weeks or month and then they mean revert. In some cases the stocks do not correct much and start forming bases during market correction. When the market correction gets over these stocks then breakout and start next momentum burst.
Any rally is reflected in a breadth thrust. Breadth thrust is a period where in a short period of time market has lot of buying. As a result of this buying the cumulative breadth ratio turns 2 plus. That breadth thrust indicate start of a possible up move.
You have to wait for market to setup and stocks to setup if you are swing trader. There are 2 types of traders those who try and anticipate the breadth thrust and those who wait for the market to confirm breadth thrust and then put on position. Because bull moves which start after 7to 10% correction typically tend to be multi week or multi month if you wait for confirmation you are not going to miss on a rally.
No sustainable rally will start unless there is a breadth thrust with 2 plus readings.
On a day time frame today is likely to be up day. A relief bounce is most likely scenario as the Japanese market recovered and the US indexes RSI2 readings. The breadth on such bounce is critical. If we get say a 500 to 700 plus day then it will indicate significant buying pressure.
