Like what we mentioned before the chinese new year, we are looking at a bottom for US market when it dips below the 200day MA. Indeed these 2 days it did dip below the 200day SMA line.
We are looking at a potential halt in this downtrend for the US market. Although it may take time to know whether a strong rebound is in the cards, we do think well about this support.
There are two scenarios that might occur tomorrow:
1) non farm is disastrous which means index might still have a big fall. But once this happens, allow dust to settle. We believe it will just drop for another 1-2 weeks and that is it!
2) the market react positively to a not-that-bad or good non farm payroll. When this happens, we believe that it is a good chance to go into the stock market again.
Either way, it is a matter of time we see the bottom. I am keeping my weapons ready!
Rgds
Daniel
www.danielloh.com
