The Junior Market bull market is here.

A big bull market has started in the Junior Market with clear evidence being shown with the rapid rise in the price of Stationery and Office Supplies from around $15 to $35 just before and after the announcement of a meeting to consider a stock split by the company’s directors but also a quiet 10 percent rally in the market from the March low.
The Junior Market bottomed out at 3,594.67 points on March 23 and has since slowly and quietly climbed higher and reclaimed the 3,900 points level on Tuesday this week, in the process reduced the year to date loss to just one percent, having gained 10 percent from this year’s low.
A large number of Junior Market stocks are showing that the supply of shares on offer has been diminishing considerably in recent weeks while in some cases bids are becoming more solid, signs of bullish movement ahead.
The most telling factors, signalling a bull market, are technical indicators, signalling an imminent golden cross. A golden cross is when the short term moving average crosses over the medium term or longer term moving averages. The Junior Market is at the initial stage of crossing over the medium term average trendline. Additionally, the market has broken out of a wedge formation to the upside. Both indicators signal significant upward movement in the Junior Market in the coming months. Importantly, where markets usually sell off after the May financial results are released and tend to go into the doldrums until July in most instances. The Junior Market went sideward in April and May and started moving up in June which is a little bit earlier than would normally be the case in the past.
The last time the golden cross occurred in early 2021, the market went on to deliver a 75 percent increase before topping out. With the average PE of the market at 11 times the current year’s earnings and a PE of 20 seemingly a possibility, another robust period now seems to be in the making.
Increased interest rates seem a factor in the decline in the market, resulting in underperformance from 2022, but rates appear to have peaked and are now expected to decline with inflation being reduced from the peak last year, as such the future looks better than the recent past and that is also supported by a number of companies that have posted good results in 2022 and the first quarter this year.