My friend say the market is off and running and will go to 50,000 from here. Will the Dow shoot to 50,000 without a rest?
The Dow is only 30 companies large companies like American Express, Caterpillar, Chevron, McDonald’s and Walt Disney, and some tech like Apple, Cisco Systems, Microsoft, Intel, and IBM.
Stocks move in waves called cycles. It’s the nature of things.
Nothing goes anywhere without a pause or move in the opposite direction for long.
The indicators look extended.
The MACD looks toppy, relative strength is overbought, consumer confidence is 63% bullish – which is a bearish indicator. Way above the 50 day moving average – all show the market will rollover soon. How low? Don’t know yet, see if it breaks support.