It has been a very nerve wracking ride in stock markets so far in 2020. Even though the Corona crash created havoc like never before in history it is interesting to note that many of our market forecasts are still underway, if not already realized. Pretty extraordinary, to say the least. Before we prepare updates on our series of 2021 forecasts we need to know what the first next step of the market is going to be. When it comes to stocks, it is clear they point one direcion: higher.
We will keep this article short and sweet, and feature one of our leading indicators.
Below is the Russell 2000 chart, daily timeframe, on 9 months.
The once-in-a-century sell off is the one that stands out, but astute chartists will see something different as the first thing that stands out.
See, reading a chart requires a lot of training. Mostly, there is one, and only one thing, that really stands out when reading a chart. That’s the intention of that market: up (now), up (later), down (now), down (later), no intention (yet).
The one thing that chartists like ourselves see when looking at this chart is the last 2 weeks of price action, say since July 17th.
If there is one, and only one intention, that we read in this chart: UP, now.
So we can reasonably expect that all stocks will go up in the near term.
