The markets run in cycles, some days up and some days down this is usual and part of this business. Some days the drops and recoveries are faster than normal and this happened in the last two months. US markets shaped V-shape recovery in October and November. The index returned within two weeks to its previous high as quickly as it dropped. There was no any retest before the real bounce. The strength of this V-shape recovery was a bit surprise, normally comes corrections in each 2-3months but the recent one was really fast and rapid.
The depth of the selloff was closely 10% in SP500 and took 3 weeks the recovery was only for 2 weeks.
How long and far will do this recovery? Obviously nobody knows for sure. An average V-shape recovery lasts between 41 and 58 days so in the worst case scenario the bulls stays with us till middle of December since we are now at 34 days.
The price goes further than the previous top between 4.1% and 7.1%. So there is still place for more gains 1%-4%, the target might be this area 2100-2150.
The BFM Assets Team.
No comments:
Post a Comment