Sometime on Friday, when world markets were scared becuase of the Fed discount rate hike, I had mentioned on this blog that it was a non-event, the panic was people chickening out and it presented an opportunity for traders to ‘buy the dip’.
Well we rallied from those 4820 levels to 4900 today, about 80 points in 1 trading session.
Looking at the bigger picture, where are we going to go now?
From 5300 levels we came down to 4670 levels, and about a 12 % correction which is healthy for a secular bull market.Looking at the liquidity present in the system, I do not think that we will test 4670 levels again.
The markets have risen form March 2009 with so much liquidity and there is so much more in the system that I would be scared to stand in front of this rampaging bull if I were a bear.