The market reached a higher high this week at 3280 but ended up reversing most of its gains. Arguably, the pattern in place is bearish unless prices are able to make a higher this coming week. The Trend Average continues to be bullish but could turn bearish if support at 3200 is broken in the next few sessions. I still favor a challenge to all-time highs before a strong sell-off takes place so we'll see how things evolve. I remember making a big deal of the US surpassing China back in coronavirus cases (80,000 cases) back in March and assuming a historical sell-off would come around this time where we have north of 3 million cases but I was completely wrong on people acting rationally. Maybe the same crowd that panicked back in March when the US had a few thousand cases will all of a sudden wake up and realize how bad things really are.
Short Term Trendd = Bullish trend being challenged
Medium Term Trend = Bullish
Long Term Trend = Bullish
* Trends are not trading signals. Trends are posted for situational awareness only and do 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 into consideration other factors
No comments:
Post a Comment