This is an update from the previous analysis.
The S&P has once again claimed up to near 2900 lvl. This is a CRUCIAL level to watch for short term price action.
The rebound from 2720 last week is likely a fifth wave up in this intermediate bull trend, and we shall see what happens at 2900 this time.
The tight ranged from 2720-2900 is going to confine the price actions if no further aggressive policy from the Fed is put out or no black swan event happens, which can move the market down in a sudden.
We should closely looking at earnings report, GDP data, and Fomc meeting this week to get an idea how the outlook goes.
However, I am still leaning toward the short side PERSONALLY.
Although no matter retailer traders or analysts from big investment banks are all sort of thinking that the Fed can flood the market with money to drive up the price, the expectation is way too optimistic. What the Fed has done was simply putting out fires and filling up holes all over the place. If someone really thinking flooding and helicopter money can save the economy from pandemic uncertainty and no economic activities, then he is more likely to be deadly wrong. The FANNG stocks occupy nearly a quarter of the total market share, indicating a very crowded trading, and the small companies are suffering from bankruptcies which will ultimately affect the performance of the big 4. This is very risky.
Again, the market can go crazy, and the extremes can be pushed further to another extreme. So paying attention to price action is the only thing that is relatively certain and transparent to us regular investors. I suggest to wait until a right-hand side confirmation on whether we go above or drop back down at this level.
Please put your own bet and GL trading!
The S&P has once again claimed up to near 2900 lvl. This is a CRUCIAL level to watch for short term price action.
The rebound from 2720 last week is likely a fifth wave up in this intermediate bull trend, and we shall see what happens at 2900 this time.
The tight ranged from 2720-2900 is going to confine the price actions if no further aggressive policy from the Fed is put out or no black swan event happens, which can move the market down in a sudden.
We should closely looking at earnings report, GDP data, and Fomc meeting this week to get an idea how the outlook goes.
However, I am still leaning toward the short side PERSONALLY.
Although no matter retailer traders or analysts from big investment banks are all sort of thinking that the Fed can flood the market with money to drive up the price, the expectation is way too optimistic. What the Fed has done was simply putting out fires and filling up holes all over the place. If someone really thinking flooding and helicopter money can save the economy from pandemic uncertainty and no economic activities, then he is more likely to be deadly wrong. The FANNG stocks occupy nearly a quarter of the total market share, indicating a very crowded trading, and the small companies are suffering from bankruptcies which will ultimately affect the performance of the big 4. This is very risky.
Again, the market can go crazy, and the extremes can be pushed further to another extreme. So paying attention to price action is the only thing that is relatively certain and transparent to us regular investors. I suggest to wait until a right-hand side confirmation on whether we go above or drop back down at this level.
Please put your own bet and GL trading!
Bears should manage stop-losses,
Bulls should now look for potential price target of 2980-3000.
Technically, a successful break above the resistance usually means a higher price target.
Like I said in several previous postings, extremes can be pushed higher, and bears should be waiting for right-hand confirmations to re-enter.
GL trading & put your own bet.