S+P 500 chart shown here continues to show that bulls
are now trapped from the all time record rice high of 4238, to last Friday's retracement high of 4183.
With todays close all the way down to 4127, it will now take a rally of over 58 S+P points,
just to get back to the "trap zone" resistance of 4183,
and they will need a rally of over 100 points to get back to the all time high.
Margin Debt has climbed to an earth shattering record 876 Billions Dollars,
with that leverage used to propel the market to record after record in 2021.
At some point, if this price rollover continues,
then some of that leverage will certainly have to be sold,
and then the potential domino effect could indeed be triggered.
When traders buy at these price levels,the risk of such a decision,
magnifies itself and thus there are significant repercussions
should their bullish strategy backfire. when price start's to fall rapidly against them.
Remember,one only finds out after the fact,
when the leverage unwinds,
how "foolish" such a leveraged bet it really was all along.
Sometimes, often at major cyclical turning points, the emperor really had no clothes.
THE_UNWIND
5/18/21
Wood Of Connecticut
are now trapped from the all time record rice high of 4238, to last Friday's retracement high of 4183.
With todays close all the way down to 4127, it will now take a rally of over 58 S+P points,
just to get back to the "trap zone" resistance of 4183,
and they will need a rally of over 100 points to get back to the all time high.
Margin Debt has climbed to an earth shattering record 876 Billions Dollars,
with that leverage used to propel the market to record after record in 2021.
At some point, if this price rollover continues,
then some of that leverage will certainly have to be sold,
and then the potential domino effect could indeed be triggered.
When traders buy at these price levels,the risk of such a decision,
magnifies itself and thus there are significant repercussions
should their bullish strategy backfire. when price start's to fall rapidly against them.
Remember,one only finds out after the fact,
when the leverage unwinds,
how "foolish" such a leveraged bet it really was all along.
Sometimes, often at major cyclical turning points, the emperor really had no clothes.
THE_UNWIND
5/18/21
Wood Of Connecticut