Last week was brutal for the bulls but this week looks to be the opposite. This morning we are opening up strongly right out of the gate with the futures up over 30 points this premarket morning. Once open though I'd suspect we'll see some trapped bulls hit the sell button to exit but I don't see the market going down again to a lower low. What's more likely is that we drop some to make a right shoulder of an "inverted head and shoulders" pattern, and then launch back up strongly all week. This first move up is likely just a small wave one and the panicked selling at the open by trapped bulls (if it happens?) would be a small wave 2 down in my view, and an opportunity to get long for what is likely to be a very strong and long lasting rally.
I do not expect this to die out in a day or so but to last all week and to produce a large point gain. I would not be surprised if we make new all time highs again before the rally ends. Maybe it takes a month or two, don't know? But this rally is likely to stay for awhile and should not be shorted but should be bought up on pullbacks. I'll be looking for that pullback today to get long myself but if there's no pullback I'll still look to average into a long position. Ideally we drop back to around 2600 to make that right shoulder but again... no guarantee. Good luck to everyone. Oh... one last thing, if for some reason we drop into the red today and close slightly lower I'd be super, super, super bullish about tomorrow and would look at it like a gift and would go balls to the walls long.
