A substantial up day with the Dow Jones up 112 points (+0.68%) and the Nasdaq up 72 points (+1.77%)
How do you spell Short Squeeeezzzeeeee? In essence, that is exactly what we saw today. While most market pundits will argue that the bull market is back on, I do not share in their optimism. First, very few of the Dow stocks are participating in this rally. Second, there are so many different divergences in most markets that there is no clear sign of anything. Finally, even though the Nasdaq and the Russell 2000 had a massive two day rally, they remain in a clearly defined bearish trend. As do most of the leading high spec stocks.
More importantly, all markets opened up a large gap up in the morning. As you know from my earlier updates markets tend to close all gaps before resuming their directional moves. Not always, but 95% of the time is a good measure. With a large gap up today and a number of gaps going all the way down to 15,400, it’s just a matter of time before the Dow reverses and heads lower.
That is further confirmed by our mathematical and timing work. It clearly shows that the bear market of 2014-2017 is just around the corner. When it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning exactly when the bear market will start (to the day) and its subsequent internal composition, please CLICK HERE
(***Please Note: Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. May 12th, 2014. InvestWithAlex.com
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