- Sellers clearly have the luxury of momentum on the recent breakdown, advancing here too fast would be an immediate mistake since after that buyers will lose faith and start to cover. The correct procedure will be a time-consuming chop inside the 25,000 - 23,000 range to shake out those travelling Robinhood crowd.
We have the weapon of a zig-zag to thank for this play; make good use of it and in cases of too much pressure watch for Fed bending the knee. There now follows a tactical and measured move in risk-off as cases start to tick higher around the world again.
If you are not already loaded on the sell side, the trip you are planning for here should be carefully measured and prepared before pulling the trigger. We are still yet to entice the major capitulation and pickup the lows. All that seems necessary before we can begin the advance later in 2021.