Alright back into SMA today .. this is my second try .
We have a few gaps on record for the bulls in this three bar break and today we pulled of a Wedge pop taking back our EMA's . We still have not overcome any minor highs though and are still below the downtrend line for this leg down ..
Additionally we have FOMC rate decision out on the third so tomorrow is probably going to be muted and I am sure that in the next few days we will see some volatility like most FOMC meets seem to bring , especially in the decision day . I drew two scenarios of what might happen on the chart too , hoping to see us hold the emas and would be really nice to see the market overall go up vs reaction to FOMC decision .
Net short levels across the board ( per SPY, QQQ , DJI, France 40 , and German 40 ) remain elevated and very net short. Also , COT futures data still showing very large imbalance of leveraged money committed to short bets . What I would live to see is for those leveraged traders to be dished out another leg up and provide us with some extra liquidity to solidify the next move up .
Time will tell . The opposite could happen too . But I think that so far we have seem a lot of bad news that was bought and if we can make it through the next couple of days and not lose the current levels , there's good reason to support another move up in the markets . Also today we had 271 new highs vs 223 new lows , which might be a hint that breadth is improving , most days recently have had considerably more lows than highs , today could be a change of character with that.
We have a few gaps on record for the bulls in this three bar break and today we pulled of a Wedge pop taking back our EMA's . We still have not overcome any minor highs though and are still below the downtrend line for this leg down ..
Additionally we have FOMC rate decision out on the third so tomorrow is probably going to be muted and I am sure that in the next few days we will see some volatility like most FOMC meets seem to bring , especially in the decision day . I drew two scenarios of what might happen on the chart too , hoping to see us hold the emas and would be really nice to see the market overall go up vs reaction to FOMC decision .
Net short levels across the board ( per SPY, QQQ , DJI, France 40 , and German 40 ) remain elevated and very net short. Also , COT futures data still showing very large imbalance of leveraged money committed to short bets . What I would live to see is for those leveraged traders to be dished out another leg up and provide us with some extra liquidity to solidify the next move up .
Time will tell . The opposite could happen too . But I think that so far we have seem a lot of bad news that was bought and if we can make it through the next couple of days and not lose the current levels , there's good reason to support another move up in the markets . Also today we had 271 new highs vs 223 new lows , which might be a hint that breadth is improving , most days recently have had considerably more lows than highs , today could be a change of character with that.
Trade closed: stop reached
艾力克~