There is not magic. A simple thing, not even a trick: it is not that easy to break such a long lasting bull mkt! And I think most of the people (including myself) were looking at a lot shorter trend, which in fact broke... but the real long term one was not even penetrated. That is the reason I put on the weekly chart in the right panel now.
Weekly (right): Still long term bullish with a deep pull back. And looked what happened here: exactly a Kumo retracement, and exactly to the level of Senkou Span B (future Kumo lower band)!!! That is the REAL bullish support: 1812-1815. The correction ended with a hammer, since then it is moving up. So Bulls still have time to think, as they survived now, but there are warning signals too! MAssive MACD negative divergence developed during this year. Kijun Sen was penetrated badly, which hasn't happened since 2012. And DMI also turned bearish.
Now obviously the question is: will it print a higher high or not??? If it forms a double top, triple top and drops back after, that will be when old bears start smell blood. If it goes to higher high, still can develope a bearish megaphone pattern, which is more visible on the daily time frame.
Daily: What a surprise!!! Great. The problem is that I am not sure if this surprise will last until Xmas time. I don't know, it can go higher, but really it looks like a bearish megaphone. Right now Price is at Key supp/res level, trades in Kumo. Tenkan/Kijun weak bullish cross, but Price overextended a lot (gor quickly far above Kijun). DMI back to bullish and Senkou A and B about to cross bullish too. Chikou Span is at Price maybe we'll see a bullish cross, but I rather think we'll see a big Bulls vs Bears fight starting at this level again, as Slow Stoch is overbought too and may turn back down a bit. The bullish move was almost vertical. I doubt it can go on for long. We'll see more choppy actions again with liquidity decreasing.
4 Hrs: No comment, total bullish. We may see some profit taking ard 1980-200 key level, but until we see bearish signals it is not yet time to re-enter massive short positions.
p.s.: Every magic ends once. The time for shorts will come, but it is not yet the time. Of course you can play small top hunting (I tend to do it myself), but building massive strategic shorts not yet reasonable. Neither going long.
If you want to be long stocks, buy rather DAX or Eurostoxx50 Index. If you want to short at some point, well then I think the focus later has to be SP500 or NAS100.
Weekly (right): Still long term bullish with a deep pull back. And looked what happened here: exactly a Kumo retracement, and exactly to the level of Senkou Span B (future Kumo lower band)!!! That is the REAL bullish support: 1812-1815. The correction ended with a hammer, since then it is moving up. So Bulls still have time to think, as they survived now, but there are warning signals too! MAssive MACD negative divergence developed during this year. Kijun Sen was penetrated badly, which hasn't happened since 2012. And DMI also turned bearish.
Now obviously the question is: will it print a higher high or not??? If it forms a double top, triple top and drops back after, that will be when old bears start smell blood. If it goes to higher high, still can develope a bearish megaphone pattern, which is more visible on the daily time frame.
Daily: What a surprise!!! Great. The problem is that I am not sure if this surprise will last until Xmas time. I don't know, it can go higher, but really it looks like a bearish megaphone. Right now Price is at Key supp/res level, trades in Kumo. Tenkan/Kijun weak bullish cross, but Price overextended a lot (gor quickly far above Kijun). DMI back to bullish and Senkou A and B about to cross bullish too. Chikou Span is at Price maybe we'll see a bullish cross, but I rather think we'll see a big Bulls vs Bears fight starting at this level again, as Slow Stoch is overbought too and may turn back down a bit. The bullish move was almost vertical. I doubt it can go on for long. We'll see more choppy actions again with liquidity decreasing.
4 Hrs: No comment, total bullish. We may see some profit taking ard 1980-200 key level, but until we see bearish signals it is not yet time to re-enter massive short positions.
p.s.: Every magic ends once. The time for shorts will come, but it is not yet the time. Of course you can play small top hunting (I tend to do it myself), but building massive strategic shorts not yet reasonable. Neither going long.
If you want to be long stocks, buy rather DAX or Eurostoxx50 Index. If you want to short at some point, well then I think the focus later has to be SP500 or NAS100.
