End of a market cycle, higher inflation, interest rates hike are inevitable, Bond yield will be higher than stocks dividends soon... Stocks could continue it's bull run for a while, however I think we really are on the top of the current economic cycle and the whole stock market could eventually drop significantly lower. And I'm not even talking about the China trade war, tensions with Iran, Russia and North Korea, consumers and government debt problem...
On a technical aspect, if the bull run is over (maybe not already) or if stocks continue it's correction, the next support zone to me is clearly that big turquoise trend line who supported the price from the start of the current bull run after the economic crisis in 2009, to 2015 and then became a solid resistance from 2015 to 2017 when we saw the first interest rate hike from the FED reserve since the 2008 collapse. This trend line is now a strong support again and price should bounce on it.
Stock market is really neutral at the moment, but if price decides to break the last bottom, the next temporary bottom could be this trend line.
Stay tuned for more updates,
Fred
On a technical aspect, if the bull run is over (maybe not already) or if stocks continue it's correction, the next support zone to me is clearly that big turquoise trend line who supported the price from the start of the current bull run after the economic crisis in 2009, to 2015 and then became a solid resistance from 2015 to 2017 when we saw the first interest rate hike from the FED reserve since the 2008 collapse. This trend line is now a strong support again and price should bounce on it.
Stock market is really neutral at the moment, but if price decides to break the last bottom, the next temporary bottom could be this trend line.
Stay tuned for more updates,
Fred
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Looks like a double top pattern is forming... Which is bearish.
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A important support has been broke, I will do a new analysis on stocks this week
