Lance Lai was back on the Switzer TV show last week and pointed out very correctly that his call made on 1 April, 2014, for the ASX/S&P 200 to go to 5548, was spot on (little r on the chart).
“I’m expecting consolidation to happen above the 200-day moving average, and then as the US market and China market pick up again, then so will we,” he said last week.
Longer term he expects positivity and if everything lines up, the ASX 200 might just reach 5995.
“The conundrum is that we have hit a 28% gain in 17 months on 29 April 2014. This is a bit high,” he said.
US S&P500
On 9 December, Lance said the S&P500 remained toppy and a pull back would be healthy in order to maintain the market’s long-term health.
However, the two pull backs in February and April since then have been shallow, which suggests there will be more to come. But first the top will extend to T on the chart.
“The main point is, we have hit a 16-month high since 16 November 2014, at 41.2% on 4 April 2014. This suggests after a blow off, there will be a larger consolidation,” he said.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.
