Indice Bull Targets
We can't tell you how many times we've heard in the last month "I can't believe this market just keeps going up... how can that be?" Yeah, it's the herd mentality, it's the algos, it's market manipulation, it's __________ fill in the blank. Some of the reasons actually sound quite absurd.
But who are we to argue with the market? Markets, like customers, are always right. Markets can make grown adults scratch their heads, weep, poor, or very rich.
At ChartPros, we like technical analysis challenges and trying to formulate "educated guesses" as to where a market could potentially be heading, where price could potentially make a move up/down/pause etc. The only certain thing we can confidently say about price is it always moves. Generally speaking, nobody knows for sure and if they say otherwise don't believe them. Just don't.
Some tout that they have indicators that tell them what's going to happen, when to sell, when to buy, when to hold. We don't believe in indicators because when technical analysis tools like support/resistance, trend, supply/demand zones, fibonacci, etc are properly applied that's really all you need.
And then there's headline stories that say things like when pigs squealed in 1999 the dot com bubble burst and pigs have been squealing a lot lately so the market is doomed... You can't make this stuff up.
So where does that leave us? Like most, it leaves us searching for answers. How much higher? How much longer? Stop... just stop. Stop trying to answer these questions and trade what is in front of us. And if you're fortunate enough to have retirement funds tied to the indices then be happy about the growth this past year. But don't become complacent because all markets cycle, and this market will be no exception.
So just for fun, we imagined we were long since this past summer and calculated some projected bull targets. Keep in mind this is not a prediction of where the market will turn, simply an estimate of where the markets could go.
If any of you follow Palladium (/PA) you know how savage the bulls have been and recently busted above all the bull targets on that chart.
So there you have it, we officially proclaim to say we don't know what the indice markets are going to do however we have fun working the math problems of analyzing charts and formulating a bias to support our trades.
Enjoy these forward looking charts from your friends at ChartPros!
/ES - http://tos.mx/hEBn3i0
/NQ - http://tos.mx/7sU47PQ
/YM - http://tos.mx/nqUBcNH
/RTY - http://tos.mx/3LDw0l1
Wanna learn how to chart like this? Start the conversation and get in touch with us.