Major Levels Broken - What Now?

The major indexes already broken the major levels.

• DOW broke 9000
• S&P500 broke 1000
• Nasdaq Composite Index broke 2000

The various indicators are showing that the market is tired and needed a rest. However, the market seems to be very resilient.

I practiced Scenario Planning in my previous profession. Therefore, I could not help but develop the possible scenarios for trading.

Scenario 1:
From here, the market could retrace a little, may be just at 23.8% Fibonacci level (measured from its recent high to the March Low) and then continue its climb. It may even break recent high. If this happens, the market might get a bigger fall in October. The fall could then be near the March Low or break below March Low. We could possibly see a last bottom before the market creep up from that bottom. For investors, it could be the best time to pick up stocks (Singapore, U.S. or elsewhere) - maybe in November.

Scenario 2:
A healthy retracement from the current position would be at the 50% or even 61.8% Fibonacci level. The market will then continue its climb. However, I still expect another retracement in October. The retracement would not be as great then. It would not break below March Low. The market will then tends creep upwards.

Scenario 3:
The market retraced all the way near March Low from its current position. The market then climb upwards before breaking down below March Low in October. From there, it starts to creep upwards.

In all scenarios, it would not be a V-shape recovery.

Cheers !

PersianCat (Millionaire-in-progress)