Application of the life line

For example, one target of this market correction is ALWAYS to test the life line's support, namely

• SPX 925.13, at the close of today
• INDU 8722.44 at the close of today
• NASDAQ 1723.30 at the close of today

IF and ONLY IF the 250 MA holds the market well during the correction and continue to head up, this BULL market since March will continue for another year or so. Otherwise, the bears will take over and the bullish run up since March will be only viewed as a BOUNCE in the Bear market.

So, life line is really a life line for both bulls and bears !

Below is quoted from the comments on life line of the stock price development:

It's so important, and i surely hope everyone have read it. Sometimes, some comments and feedback's are very very insightful and helpful ! I really appreciate such beneficial comments ! Don't miss them.

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I am focusing on more long term trend.

Once 250MA is broken out and heading up, it can not be very easily changed to down. This is the key for us to catch the BIG wave and clearly see the BIG picture. For example:

1. NOW the NASDAQ is up and above 250MA, if during the market correction, 250 MA can hold it well and continue to head up, we will see the BULL wave can run up for at least 1 year. Other wise, the BEAR market continues. SO you can have a BIG picture, regarding the stock market.

2. Look at the stock price development of GROW, it up more than 5000% in 4 years !! This is the way we should trade stocks. Follow the big WAVE.

That's another research topic I am doing now:

How to discover the long-term bull and ride it with a 10-bagger to 100-bagger gain via following the BIG wave correctly.

This is the only way we can make a BIG money in this market: Sit tight and win big while right; lose small when wrong.

Unfortunately, most people win very little when they are right ! But sit very tight and accumulate a BIG loss when they are wrong.

250MA surely gives me a good starting point on this topic ....
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