Is the downtrend over?
Last week it appeared that the Friday surge was enough to break through the downtrend. This Monday disproved that after the Dow and major US indices plunged several percentage points from their opening price to once again fall within the limits of the downtrend and continue the fall. This Friday yielded a very similar result to that of last, but this time could we actually be out of the trend?
533,000 jobs were lost in November alone, but trader’s seemed to be hardly affected after they pushed the Dow to close up 259 points. The expectations were a total of 320,000 job losses. The numbers could have been worse, November also saw more than 400,000 people leave the workforce. These were the biggest losses in 34 years.
Even with such negative news traders were still finding reasons to buy. Many are starting to believe if the numbers are really that bad, the government will swoop in shortly with more stimulus and more aid for stuggling citizens, investors, and businesses alike. Stimulus of course will have the power to push the market forward.
Monday could bring a huge rally to Wall Street provided the market maintains its current levels out of the triangle bottom formation. A retouch to the downtrend and then a spike upward would be the best confirmation though. Hold on tight for Monday, it will either be a repeat of last week or it will do the complete opposite and move upward at least 300 points for the day.
In any event get your trading ready to make some money on Monday.
