All I've done is measured two
recent bull moves.
Not exact matches
We are getting close to retracing the
recent sell off and my simple
moving averages will keep me on the right side of the market... however remember... this is one of the oldest
bull markets... there are issues all over the world from Europe to Asia....
The reason for this temporary overshoot is clear from the chart at the beginning of this weekly comment: the most
recent 10 - year period captures a trough - to - peak
move: one full cycle plus an unfinished
bull half - cycle.
A
bull trap forms after a
move higher, the amateurs who were on the sidelines watching a
recent strong
move unfold can not take the temptation anymore, and they jump in just above or at a key resistance level since they feel confident the market now has the momentum to break above it.