Stock Market Setting Up For A Bigger Pullback - Part I
Our researchers at Technical Traders Ltd. have identified a potential in the markets that many people may have overlooked or are not prepared for. The recent strength in the markets has skewed many opinions toward the bullish perspective as the S&P, DOW, Transports and Nasdaq have all pushed towards new all-time highs.
We are writing this research post to alert our followers that we believe the US Indices and major markets may be setting up for a moderately deep price pullback that could be in excess of 5% or more.
Our proprietary price modeling systems and advanced learning models are warning us that the upside trend is likely still in place, yet there is a growing and stronger potential for a price pullback that could result in a 4~7% pullback in the near future. We want to alert all our followers that we believe an immediate price pullback is setting up and to protect your long positions.
The continued rally in the US majors has allowed many traders to become overly comfortable to the potential for a major pullback. Much like what happened in February 2018, when a bigger pullback did happen, all of a sudden traders were screaming that a massive top had formed and that everyone should watch out for a further breakdown in price values. We are not saying that right now and we want to be clear - so please read the following statement very clearly…
We believe a 4~7% price pullback is setting up in the US markets that will likely extend into September 2018 before forming a new price bottom and prompting the markets to rally to new all-time highs before the end of 2018. We believe this price pullback/rotation is healthy for the markets after such an extended rally and we believe many traders are discounting the potential for such a move and will surprise many traders. Protect your long positions and prepare for this type of price pullback. You will be able to re-enter your positions as the bottom sets up and a new rally begins.
Let's take a look at some of the charts that support our research.
Source: https://seekingalpha.com