Friday, February 22, 2013

4 SPX Points

From the number of newly formed bears coming out on CNBC (the world renowned Gartman among them) you would think we were down a whole lot more than 4 points this week.  It is a blip in the monster uptrend.  The dip on Wednesday and Thursday was one that refreshes.  It got rid of the weak hands like the Gartmans of the world, and replaced them with stronger hands.  The stronger hands who have to get in and stay in for fear of being left behind, underperforming the stock index again.

This week's action actually has made me more bullish, not less.  We had heavy volume on Wednesday and Thursday selloffs, with a strong reversal to the upside.  Extremely bullish action.  Looking for new highs in March. 


nb said...

Does today's Italian election results and the subsequent selloff change your views on the near-term market?

Market Owl said...

The market should take a few extra days to consolidate between SPX 1480 to 1510 than originally expected. There was some minor technical damage done but this is still a dip buyer's market.

This pullback will be the springboard to new highs in March. The Italian elections will be put aside in a few days and it will be back to the much "hated" grind higher.