I have been leaning more heavily on charting recently, as I believe we maybe at a top. It is also possible this is just a pullback with a market ready to explode higher.
To try to navigate the emotions "buy it all" and "sell it all", I am trying to use charting to help.
Its partially helpful.
But today I want to share with you a chart that has emerged, it is quite insane on how that charting demonstrated the market hitting chart resistance.
I bring you two charts of the S&P 500, the first is back to March of last year to today.
Notice the red line in the upper right hand corner trending down. I drew that line a week or so ago using price action to show the resistance since Feb 12th. The second chart, shows TODAYS price action and I did NOT touch the red line, it showed the actual resistance the chart showed.
In the days ahead if we can break through on a CLOSING basis above the red line is bullish. And if we can go above Feb 12th high, we will be in a full all out bull market.
For now, appreciate todays price action, and how the market hit a 'glass ceiling' giving way on the close. The magic SPX number I have stated to friends is 3897, and yes, we closed below it.
I put my shorts back on, and I am prepared for a rejection, but quick to end my shorts if we close above that red line. My bear market will be confirmed somewhat with a close below SPX 3721, first level of support is 3693. I think there is a good chance we will finally get a counter rally there. This may then fail, with a target of 3250. If we hit that, I will need to reassess the bottom target.
The last 5 days price action, quite amazing today!
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