We have not really seen a week like this in the market for quite some time.
- Dow up 9%
- S&P up 11%
- Nasdaq up 11%
That being said, how much longer can this upward momentum carry us?
You cannot really blame anyone for being skeptical. After all the markets have toyed with our hearts for over a year now, so most everybody is probably already expecting the worse.
Whenever you experience a long trend followed by a brief reversal it is a good idea to use the Fibonaci tool. Basically it helps you measure the retracement the stock has made on the previous trend.
Doing this for all the three major indices shows us that our rally may have lived a short life because we are already knocking on the door of some critical retracements. Now if we bounce off this, then this could possibly mean that there are still lower lows to be had. Look out.
Watch the following vidoe to learn more about this bear market rally.
INO – Check out a free trend analysis for any stock or market