SP 500 Futures are drifting higher strongly after hours and may break all resistance lines to the upside before the market opens..
Crash followed by a secular bear market. One must understand that at some point the rate cuts and none of the other tools at Federal Reserve will work anymore.
First, we broke the lower support line of the trading channel, today we made a classic pullback to that broken support line, then... TWIT came and we went down passing the the lows of yesterday. WE ARE GOING LOWER!
I was already getting worried about my short position, but president Trump delivered great news! Market needed a good catalyst. It got one just now:)
What was interesting was that the SP 500 went straight down immediately after the rate cut announcement. There was no whipsaw to take out short stop loss orders. It just plummeted. This was an easy risk free trade. All one had to do is to put a stop loss order slightly above the highs. It just fell like a brick from a roof. Later add to shorts on a classic...
The trading channel is no longer valid. The lower trendline has been broken today. This should indicate change of the trend. We are also pulling off from the huge 3 yrs old resistance line on a monthly chart indicating possible triple top. The triple top reversal pattern that formed in the past 3 years is valid as long as we do not breach the upper resistance line...
We have pulled off from the resistance line. The rate cut was a disappointment. The guidance was a disappointment. All experts on CNBC sound confused. We are week technically and RIPE for a pullback from a clear RESISTANCE LINE. Tomorrow should be a BLOODBATH. Today was the time to enter SHORT position by buying SPXS with a tight stop right above the highs....
So, the herd here is shorting. Almost every post is SHORT, SHORT, SHORT, so that must be the thing to do right? Because we all analyzed it and that seems the most likely scenario. And there is a divergence on MACD etc.. WRONG! What else exactly makes you think that we are at a reversal, and not in a continuation pattern? Look at the long term monthly chart. The...
This is very bad for short sellers. The potential reversal pattern could have failed a month ago, we raced to the top for the 4th time, went through the horizontal resistance, made a pullback and now we are going to pierce through the final resistance line. This can be a big continuation pattern.