The beginning of February is historically a strong month for stocks and indices. One thing however that I providing me some context that the market may see a correction in the near future is this massive rising wedge with bearish divergences.
I wouldn't be surprised if we saw one last move to the previous high (ugly high) to grab some liquidity and make its way down. The reason I don't quite like the current high is that it doesnt seem to be too much of a battle zone resistance. Generally, strong reversals happen with large wicks that trap traders on the wrong side of the move.
Currently, the market is still holding some bullish structure making higher highs, and buyers may want to see price move higher before taking profits.
My overall plan is to continue scaling into SQQQ towards the high of this move and hedge the portfolio in the case the market does correct between 5%-7%.
Good luck!
I wouldn't be surprised if we saw one last move to the previous high (ugly high) to grab some liquidity and make its way down. The reason I don't quite like the current high is that it doesnt seem to be too much of a battle zone resistance. Generally, strong reversals happen with large wicks that trap traders on the wrong side of the move.
Currently, the market is still holding some bullish structure making higher highs, and buyers may want to see price move higher before taking profits.
My overall plan is to continue scaling into SQQQ towards the high of this move and hedge the portfolio in the case the market does correct between 5%-7%.
Good luck!
Trade active:
Looks like we are potentially losing upwards trending support of the wedge.
Comment:
We had a great breakdown, currently looking to retest the wedge. I would currently look at this as an opportunity add into short / hedging the market.
Order cancelled:
Looking for better entries as markets easily pushed through resistance.