May 2012 Outlook

May Market Outlook: Good

Good day.

As mention before this, the market is going to have some correction.

It is a 3 weeks correction where wall street is in red.

1. What is the coming market outlook? This will be always the question.

Usually market correction for a major moving will be 2 weeks to 4 weeks. I will expect another week of side way and there will be going up again.

In the previous session, the market had break through the 1460 ceiling, it is expected to go higher then this point.

2. What happen to Spin and Euro collapse? Will this affect the market?

If you look into details of US economy, the earning call basically is doing better then expected most of the time. Euro economy meltdown start since last 2 years and it is not doing any good. Until now, it seems no sign of solution, or solid solution provide. But the market is already "use to it". There will be not much surprise on the bad news in Euro.

I expect the market will not move much on Euro bad news until Aug 2012, where Greece have to ask for fund from ECB again.

Market Direction - 28 March 2012

Lately boost up since beginning of year 2012 had bring the market to 52 weeks high, even up to a 2 years high.

This shows a good sign of economy recovery. Additional news on lower unemployment rate shows a more solid sign on economy recovery.

According to the study; the current situation is very similar to what happen in Nov 2010.

The prediction for current market move will be having some correction; Might hit on EMA 7 and continue bullish until the Bollinger band show narrowing for a change.