As I mentioned few days ago market did take advantage of both:
Looking at S&P 1H chart there is still room for the market to go up.
Problems might come once we reach 2910-2915 where several resistance lines are located:
All of these might convince some players to look for profits on a recent up move and even look for shorts. If 2913 will break next resistance is at 2940 (recent market highs).
My current 2 week outlook is still bearish. With some room for further move up, I will be looking to short the market again around 2910-2915 if resistance will prove to be solid.
Remember though, anything is possible at this point.
Mr. P will most probably try to come up with some rescue plan this week, as market downturn is not fashionable to his rhetoric.
Powell will speak on Friday and most likely he might pass a strong message that FED will be cutting rates to save the market.
Look for another volatility spike as now it's time to slow things down, VIX will come back stron at some point this or next week.
If you are a trader - take advantage of short term swings,
If you are a long term investors - sell the rallies and slowly build your cash position, it's gone get cheaper soon.
- 38,3% fibo
- short term oversold conditions
Looking at S&P 1H chart there is still room for the market to go up.
Problems might come once we reach 2910-2915 where several resistance lines are located:
- 61,8% fibo
- long term trend line
- short term resistance line
- and range or recent markets highs
All of these might convince some players to look for profits on a recent up move and even look for shorts. If 2913 will break next resistance is at 2940 (recent market highs).
My current 2 week outlook is still bearish. With some room for further move up, I will be looking to short the market again around 2910-2915 if resistance will prove to be solid.
Remember though, anything is possible at this point.
Mr. P will most probably try to come up with some rescue plan this week, as market downturn is not fashionable to his rhetoric.
Powell will speak on Friday and most likely he might pass a strong message that FED will be cutting rates to save the market.
Look for another volatility spike as now it's time to slow things down, VIX will come back stron at some point this or next week.
If you are a trader - take advantage of short term swings,
If you are a long term investors - sell the rallies and slowly build your cash position, it's gone get cheaper soon.
