Stock Market Faces Uncertainty After Strong 2023 Rally
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The stock market had a very strong year in 2023, raising questions if the rally will continue into 2024 or see a correction. Both bullish and bearish forecasts predict increased volatility and a pullback from current highs.
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Technical analysis shows patterns that suggest the market is completing a larger uptrend that started in late 2022. This implies an impending multi-month correction that could erase the 2023 gains.
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Timing indicators point to a market top forming from late January through mid/late February. Key indexes like the Dow and DAX show a final 5th wave rally is in progress.
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Divergences are appearing with small caps, high beta stocks, transports not confirming the breakouts to new highs in the major indexes. Apple stock is also signaling caution by failing to break resistance.
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Regardless of the long-term outlook, near-term technicals favor a deep market pullback into 2024. Premium services are available to follow specific trade recommendations through this expected volatility.