Armchair PREDICTION based on prior observations of the market behaviour. The market exists to cause MAX PAIN to the MOST number of people. I have my own reasons for this prediction based off of money inflows into funds mostly occuring on Mondays. Monday price action rarely coincides with the weekly outcome of price action. If I were wanting to inflict as much pain to the most number of people I would drive the market up to 2880-2900 ish levels and squeeze out weak BEARS and draw as many people in on the long side as we break just above resistance and see a somewhat strong move above 2890 resistance toward 3000. Then at the end of the day I would end the day with a hammer or doji candlestick. Likely the "reason" for the the celebratory rise will be the new round of PPP Funding going into effect Monday and rumors the wicked witch of the east (Kim Jung Un) is dead. Then Tues,...Bear market resumes.... causing more pain to the weak bulls and making the weak bears lose out on what would have been a profitable short trade. Red arrow is where I think we will top out. I am certainly not "trading" Monday other than to add to positions.
NOT advice here. Just observations and predictions. Have a game plan for this potential scenario....I know I do. Good luck to all.
Will revisit this Monday and Tues to see if I am correct.
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So Tues we had a BIG reversal in the markets with SOX testing overhead STRONG Resistance at 2920 and then reversing rather sharply only to test the next resisitance at 2886 and breaking down there too. So my 2 day PREDICTION played out ALMOST EXACTLY as I laid out this past weekend. Did you profit from this?.... I did.
WOW. Today is looking like it will play out EXACTLY as I stated. Added to shorts.
eganon69
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So I was ALMOST dead on target with my prediction I said the market would drive up to 2880-2900 level and the high of the day was 2886.. Now we are seeing more bulls as people say we are now over the 50 MA on the charts. Yay!!!....well I am being cautious. I think a sell off is coming. The question becomes how much of a selloff. Tomorrow SHOULD be a down day now that all the John Q Public's mutual funds and 401ks are funded and used to buy the market up today. NOW the Big Money can start to churn and trade and sell off. I know many are calling for higher prices now. I suspect we can melt up to around 2925 ( I have a strong resistance level around 2926) but possibly as high as 2950. Look for my other ideas that I will post later tonight that shows this is likely a very good place for a sell off based off a weekly chart.
eganon69
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Looks like we may close near the highs or at the highs of the day. Just as anticipated... Update later tonight.
eganon69
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Looks like today is playing out pretty much as I discussed in my original post. We will see where we end the day. Currently SPX at 2873