Powerful bull markets correct in price, time or price and time. After a significant rise over an extended period, an index or a stock often corrects in time. The time duration over which an index or a stock trades in a relatively narrow price range is commonly known as the "consolidation" period. What follows a consolidation period is continuation of the underlying trend.
After rising significantly over the course of last five and half years, all major indices have entered into an extended consolidation period and have corrected in time. Chances are excellent that the underlying uptrend resumes once indices break out of the current trading range in the next couple of weeks.
SPX: S&P 500 Index D-SMA: Daily - Simple Moving Average
DJI: Dow Jones Industrial Index D-EMA: Daily - Exponential Moving Average
DJT: Dow Jones Transportation Index PDL: Primary Downtrend Line
NAZ: NASDAQ Composite Index PUL: Primary Uptrend Line
RUT: Russell 2000 Index ADL: Active Downtrend Line
OEX: S&P 100 Index AUL: Active Uptrend Line
NDX: Nasdaq 100 Index DTL: Dynamic Trend Line
Disclaimer: The views expressed are provided for information purposes only and should not be construed in any way as investment advice or recommendation. Furthermore, the opinions expressed may change without notice.