A week has passed since we broke out, now the question is how high we can go and how long the rally can carry on. Once again I have no idea, the reasons as follows:
1. Many stocks broke out and have held up well.
2. The market has been very strong and has not given much opportunities for people to get on board. Usually a sign of the start of a lasting bull trend.
3. Not many people believe in this breakout. I never saw so many bloggers or traders have one and only one conclusion: breakout is short-lived and we are going to pull back very soon. Trust me, go to any other trading sites, the conclusion is same and I find it very interesting, since the market always fools the most people.
4. The weekly chart of NDX has formed a solid bottom and broke out.
1. The bank and the semiconductor index still lag this rally.
2. China stock market has stalled.
In conclusion, I thought we would have little upside room last weekend, just as 99% of traders do, but right now I see a chance that we will continue to climb because the market always surprises most of us.