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The v-shaped market

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The last two weeks had been roller coaster for the stock market. The DJIA dropped almost a thousand points in one week and then up almost 600 points in one week.

It makes a v-shaped pattern and this pattern is a bullish one! It simply means investors are willing to buy at the dip - which happened in the last few years! The market is expected to go up in the near term as it passed the 50 and 200 day moving averages.

Investors are happy that Janet Yellen, the newly appointed Fed Chair, remains unchanged on Bernanke's Fed policy! Stocks reacted immediately afterwards. The market will have its last stretch before a major collapse. Janet Yellen once said there is no equity bubble - but how?

All in all, the market will go up in the near future - the uptrend is definitely solid. Happy trading guys!



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