The market went into a new uptrend on Thursday April 2nd.
It is now all about the coronavirus. The market topped out for now on February 19th with the Nasdaq coming very close to the 10,000 mark. It has since gone through its fastest 10% drop off a top in history. Correcting by 12.9% top to bottom in only seven days. It found support at the 200 dma line last Friday, and have since traded in choppy fashion between the 200 and 50 line. With yesterday’s down day the market moved into a new downtrend.
The market went into its latest uptrend on January 31, 2019.
The market went into a new downtrend yesterday, Thursday, October 3rd. This is a rare event lately as this is only the third downtrend in the last two years. Markets are at extreme valuations, so caution is adviced.
We have just witnessed the shortest possible downtrend: one day. The market went back into an uptrend yesterday Monday, March 26th.
The market entered into another downtrend on Friday, March 23rd. This caps the uptrend to only two weeks and makes it the first short-lived uptrend in over two years.
Another short-lived downtrend. The market entered another uptrend on Friday, March 9th.
We have been in a continuous uptrend since March 1, 2016 (with the exception of a few days in June 2016). This is unprecedented and speaks volumes about this bull market and how strong it has been over the last two years.
We did, however, get a shift in direction yesterday as the market went into a downtrend.
After only a short weeks downtrend, the market went back into a new uptrend yesterday after three strong up days in a row.
With market reactions to the Brexit vote we entered another downturn.