Market Higher for December 2015?

Every man and his dog is looking for some sort of mega crash.

Will it happen?

I don’t think so, a few key tells for me occurred on Friday last week

Capture

Take the Nasdaq 100 Index above – doesn’t really matter which Index you refer to.

My DAILY 5 period Moving Average of the StochRSI (8) signals a high – this indicator is often wrong on highs!

My WEEKLY 5 period Moving Average of the StochRSI (8) signals a flat or down period (Chart NOT shown)

*Edit – IF the market is on a real downer as signalled by the StochRSI Indicator then this is classed as a BEARISH reversal [the position of the Weekly and Daily Indicator positions] PRICE should hammer downwards – if it doesn’t then that signals the StochRSI is wrong

However,

Capture1

Total Put/Call Ratios have been +1 for a number of days

Equity Only Put/Call Ratio has just exceeded 0.75

These readings often signal a period of bullishness in the days/weeks after

Capture2

Sentiment readings are “NORMAL”

We’ve entered into the seasonally bullish period of Thanksgiving to the first few days of January

Most importantly PRICE ACTION has been going UP as can be seen from the chart above.

It would not surprise me in the slightest if we see some form of little pull back and then a continuation of Bullish prices – when the bears are banging and buy tonnes of puts they’re often proved wrong.

Time Cycles – 18th August plunged the market right on cue, The Time cycle expected October could of already printed its name on the August low! Which would sit comfortable on a Bullish December 2015.

Obviously this is all best guessing – let the market tell you it’s movements

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