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After 7 days of small increases, the market finally paused. Is it a correction or is it a mid term top?
No one knows.
Overall market conditions are excellent.
1st, in my opinion, Fed is NOT going to increase the rate at the next meeting. Therefore the stock market might go higher.
2nd, the oil price is going down, which is a plus for the market. I think it is a mid term top for the oil stock before earning.
However, the market has rebounded too quickly. Many leading stocks recovered most of the loss this year.
The next support is around 2165 for the NASDAQ and the next after that is around 2115. If the market ends at or above 2165, then it is a shallow correction. Otherwise it will be a midterm correction.
This correction might turn out to be a trick for the market makers who have written a lot of expensive calls after the last option expiration date, and therefore they tried to take every advantage to sell off in order to keep stocks in check.
I like waves in the market. I really do not like a still market.
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