I hope everyone is staying safe and healthy during these challenging times. Again, I have not been able to sit down and update the blog because I have been stretched to the limit with work. Long gone are the days where I could just sit at Starbucks, relax and write. Now, I just work and work. In fact, I don't think I have worked this much since I quit corporate sales 20 years ago (can't believe its been 20 years!!). The difference is I work for myself now and make many times what I did back then so in the end it's all good. I am very fortunate to stay this busy considering the situation and I am using this experience to learn and grow the business.
Anyway, the market was able to overcome resistance at 2855 and invalidate a bearish pattern that had been forming. Also, prices were able to challenge and close above the 50 DMA for the first time in 2 months. However, the current rally remains a bounce from a steep sell-off and could soon resume selling once the rally exhaust itself. The next significant resistance level is 2950, which is technically not all that far from ATH. Last, but not least, the pattern in the market is that of a "megaphone top" which would line up well with an ongoing bear market. Some people might be thinking that we are going back to normal soon but we're nowhere near normal in the general sense. In fact, I am afraid we will be back in shelter at home mode by the end of the year, during December nonetheless so imagine what corporate earnings will be looking like then in a shrinking economy. We are going to be dealing with this well into 2021 if not 2022 and I am not so sure most people actually realize it.
Stay healthy and safe!
Short Term Trend = Bullish
Medium Term Trend = Bearish
Long Term Trend = Bearish
* Trends are not trade signals. Trends are posted for situational awareness only and does not take into account wave counts, technical or fundamental conditions of the market. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking
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