Inline to my previous post a strong recovery bounce brought market to much higher levels.
S&P closed the gap and went even higher to finish just at the top level of local short term consolidation between 2914-2938.
The end of the sesin did not bring any profit realization, so even though 2938 does not seems to be of any significant importance, market seems to be strong and believe recent selloff is over.
I would not be so optimistic just yet.
Small correction on Gold and Silver seems to be over, rare earth metals are picking up and bonds rally continues .
These are not very promising to further growth in equities.
So what is next? I would assume 2953 - 2964 is in reach for today's session.
2953 is a hight of left shoulder, 2964 is a 78,6% fibo level and also a resistance form first weeks of July.
I would consider these level key for a market decision on where to go next.
My personal filing is still bearish. I see no reason for further growth with tone elements flashing warning signs all around.
For now I will remain on sidelines since risk reword ratio is not favorable for LONG positions, and it is too early for shorts.
Note: I'm not a day trader or swing trader. Mostly I invest long term but part of my portfolio is allocated to short and mid term trading (5-30 day trades).
It is not recommended to stay on sidelines but I need to reset my thinking since recent market movement is rather confusing.
S&P closed the gap and went even higher to finish just at the top level of local short term consolidation between 2914-2938.
The end of the sesin did not bring any profit realization, so even though 2938 does not seems to be of any significant importance, market seems to be strong and believe recent selloff is over.
I would not be so optimistic just yet.
Small correction on Gold and Silver seems to be over, rare earth metals are picking up and bonds rally continues .
These are not very promising to further growth in equities.
So what is next? I would assume 2953 - 2964 is in reach for today's session.
2953 is a hight of left shoulder, 2964 is a 78,6% fibo level and also a resistance form first weeks of July.
I would consider these level key for a market decision on where to go next.
My personal filing is still bearish. I see no reason for further growth with tone elements flashing warning signs all around.
For now I will remain on sidelines since risk reword ratio is not favorable for LONG positions, and it is too early for shorts.
Note: I'm not a day trader or swing trader. Mostly I invest long term but part of my portfolio is allocated to short and mid term trading (5-30 day trades).
It is not recommended to stay on sidelines but I need to reset my thinking since recent market movement is rather confusing.