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Correction fears are over – indices are looking at their all time highs!

It only took couple of weeks to see the tables turn completely. While only few weeks ago we saw panic spreading around the Evergrande problems, which was compared to Lehman Brothers, it only took a bit of time to see indices looking at their respective ATH again.

Today we will look at two fundamental indices which I believe look very bullish and where I can see the trend continuation. These two indices will be S&P 500 and NASDAQ. Both of these looked like they were going into deeper correction only while ago. However, it turns out that it was only a bit of a retracement, which is very common during September (speaking historically) and can now lead to more uptrend.

S&P 500

This index is currently testing its ATH. I do not think that this is a question of if we reach ATH, but rather when we reach it. I can even imagine S&P 500 trading at levels of 4 800 in the coming weeks. I have highlighted two possible scenarios that I can see in the upcoming days, but both of them can lead to ATH.

S&P 500 index outlook S&P 500 index outlook, Source: Authors´ analysis

NASDAQ

NASDAQ was one of the first indices that created a new ATH. This technology index saw only a short and relatively insignificant correction. It was thus expected to see this index climb higher, with other indices following. NASDAQ is also still above the main trendline and until this changes, I think we are on a road to 210.

NASDAQ index outlook NASDAQ index outlook, Source: Authors´ analysis

Summary

I personally believe that the indices are in a good shape. Every time you see a correction, it is important to try to find out whether it is or whether it is not significant for longer time frame. In this case it was not, and that is a reason why might be able to see ATH soon.

Jakub is a crypto trader and founder of Trader 2.0 project, which helps hundreds of traders from central Europe to understand cryptocurrency trading and its challenges. Jakub not o...

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