King Donald swore in office at 12:00 on Jan 20th which is just a half working day. After the inauguration ceremony there is a luncheon in Capitol Hill, bidding farewell to former president, and walked through the Pennsylvania Avenue back to White House as tradition needs. His first full working day was on Jan 21st which is a 6 Planetary Alignment, a new scenario started. He quarreled with Zelensky in Oval office on Feb 28th which is a 7 Planetary Alignment, a lot of comments said US started to give up the universal value established after the World War II. King Donald gave up justice, fighting against dictatorship and turned his attitude to follow the money only. Monetary value is above universal value.
In the beginning of the year, the writer forecasted the highest point of S&P is 6,600 which is 10% higher than previous year where a lot of analyst did so, some even aimed at 7,000. How about the lowest point, 5,500 which was just reached. Most of the time, the US stock is running above the 250-SMA. Of course sometimes were lower such as the pandemic of 2020, but the time would not be so long.
In the last century, US market was accustomed to use 200-SMA and Asian market 250-SMA. It is quite simple that there are 52 weeks in a year, when cutting off market holidays it is 50 days, when times 5 is 250. No need to say the 250 SMA is more logical and should use to stand for year line rather than 200 SMA. Even some uses WMA, it’s no problem, should be 250 more logical than 200 as year line.
As a rule, when a drop comes, some people would like to wait for a lower point in order to buy at low, but according to experience, normally US stocks rebounded faster than expected. For money comes from every country of the world. When US stands for justice, it is. But when US gave up their universal value, some money would go to EU, Japan or gold market instead of US Dollar. So whether the market will reach bottom at 250-SMA does not depend on technical analysis, it depends on the concept of King Donald. Whether he would just follow the money or universal value, whether he would treat the EU and G7 as an enemy or partners. Anyway, it is not easy to catch the bottom at a specific point, if you want to buy at the bottom, the best way is to buy continuously for 6 months for the market is going to form an Ursa Minor Pattern as what are you going to see in the sky.