Market update: upside continues as was predicted already almost two months ago.

KISS (Keep It Super Simple), is Intelligent Investing’s mantra, as it is provides for easy to understand insights and continues to be highly profitable. As such, here are the long term and short term moving average charts which I first introduced to you almost 2 months ago (see here, with explanation) and which then already correctly told us to remain bullish. The current long term chart has not changed a bit between 2 months ago and now hence I.I. remained, despite all the noise from price, media and market-pundits alike, correctly bullish (see below), and continues to be bullish. KISS. (click charts to enlarge)


The shorter term SMA chart is of course more dependent on price, but all SMAs are also here pointing up and are all bullishly aligned, like the longer term SMA chart, with the shortest SMA on top and the longest SMA at the bottom. Although price (2117) is not shown, it’s obviously above all SMAs (fastest SMAs are at 2066 and 2107, respectively). This is another bullish indication. Although one always has to keep a flexible and open-mind, I.I. remains bullish until the market tells otherwise. 


In trading the saying goes: you’re is only as good as your last trade. Well, in that case let me do a quick trip down memory lane showing Intelligent Investing’s continued and correct calls for higher prices throughout. Lets start almost two months back in time.

  • On March 4 I showed that the long term SMAs chart told us to continue to be bullish. This call was correct. See here.
  • On March 15 I showed that an important market bottom was reached. This call was correct. See here
  • On March 22 I suggest the SPX will reach an average target of 2320 in the weeks/months ahead. See here. So far the market is on track.
  • On March 27 I showed the picture perfect 5 waves up on the COMPQ and that higher prices should thus be expected. In addition, I.I. nailed the wave 2 low. These calls were correct. See here.
  • On April 12, after a well-deserved vacation, the freely available Premium Member update once again showed that buy signals had emerged across the board. These signals were all correct. See here.
  • On April 18, a Zweig Breadth study revealed that bottom levels could have been reached, although odds favored a lower low first, but this the market didn’t grant us. See here.
  • Five days ago, suing objective, factual Technical Analyses of the S&P500 that the price pattern combined with Technical Indicators, I showed that “the correction will be different and is either over or will most likely not be as severe as many would like to suggest.” Within days this was proven correct. See here
  • Finally, two days ago, another factual objective analyses of the COMPQ showed that more upside could be expected. The very next 2 days the market did not dissapoint. Again the call was correct. See  here

The proof is in the pudding, and objective factual analysis of the charts using OEW, EW, TA, TIs, market breadth, and other techniques correctly and continuously told us to remain bullish, NOT bearish, with of course a reserved dose of skepticism of the bull-case if and when key support levels would break to the downside, which never happened, and to continue to expect higher prices.

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