We are fast approaching extreme bullish breadth levels on the MM.
In the short run that is likely to lead to a correction/consolidation. However you would see many first stage bases on host of stocks. There are few late stage bases but most stocks have recently put in bottom and have started rallying. In light of that context this move may not be over and likely to continue for some time after correction.
The long sideways action after the October bottom has resulted in very good bases and unlike previous bounces in market you do not see V shaped moves.
Besides that absence of 300 plus days during this move indicates systematic accumulation and the footprints of large fund buyers.
The earlier phenomenon of all stocks moving together has also stopped. We are getting a stock pickers market.
All in all the context of this move indicates a possible start of a longer duration bull move.
In short run however expect a dip of 4 to 5%.
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