Hope your weekend was a good one. We’ve got the markets waffling to
kick off April, which should come as no surprise considering the
volatility we’ve seen in both directions over the last few weeks. But,
like we’ve seen on every single occasion for about six years now, when
it’s time, the plunge protection team comes in and saves the long-term
bulls.
It’s almost like clockwork, and it’s almost eerie. However, we can
simply chalk it up to somewhat low volumes, extremely bullish long-term technical, and a somewhat better economy than we’ve seen in quite some
time.
Basically, when we couple an extremely dovish interest rate environment with all of the above, it’s a perfect recipe for a classic market melt-up, one we’re not going to bet against much until we strongly believe it’s time, but that time has yet to come.
Sure, we’re on record in recent years on more than a few occasions pointing to the “possibility” of a short-term selloff, and often calling them accurately, but we have yet – in six years- to suggest this long-term bull market is anywhere close to being over.
That’s just the reality, and until we start to see significant volatility in both directions on the long-term charts, we still strongly believe these markets are headed higher.
How much higher and the time frames associated with those higher levels are obviously the bigger questions for the markets. So, let’s have a look today at what the near-term landscape may offer equities.
The weekly chart of the NASDAQ Composite is still going to be the most telling for the near-term, which is provided below. Interestingly enough, although we definitely don’t think the long-term bull is going away anytime soon, the last two bars on the weekly chart here have gotten longer than anything we’ve seen since the end of last year.
Basically, when we couple an extremely dovish interest rate environment with all of the above, it’s a perfect recipe for a classic market melt-up, one we’re not going to bet against much until we strongly believe it’s time, but that time has yet to come.
Sure, we’re on record in recent years on more than a few occasions pointing to the “possibility” of a short-term selloff, and often calling them accurately, but we have yet – in six years- to suggest this long-term bull market is anywhere close to being over.
That’s just the reality, and until we start to see significant volatility in both directions on the long-term charts, we still strongly believe these markets are headed higher.
How much higher and the time frames associated with those higher levels are obviously the bigger questions for the markets. So, let’s have a look today at what the near-term landscape may offer equities.
The weekly chart of the NASDAQ Composite is still going to be the most telling for the near-term, which is provided below. Interestingly enough, although we definitely don’t think the long-term bull is going away anytime soon, the last two bars on the weekly chart here have gotten longer than anything we’ve seen since the end of last year.
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