🖼 Daily Technical Picture 📈
➤ I'm not a nerdy Star Trek fan but it seems the phrase about resistance is appropriate here. For the S&P500, price is challenging the upper ceiling of the range that has unfolded from the start of October.
➤ A higher high has developed due to the temporary intrusion above the resistance level. This is a basic requirement to confirm a longer term trend change. A major higher low is now required.
➤ The bluechip DJIA (DOW30) is leading the charge higher. This is a bit suspect given that you would expect the riskier indices such as the NASDAQ to lead in a bullish environment. This may be a temporary lag but we need to keep an eye on it.
➤ I now hold zero exposure having exited my S&P500 position at resistance. I don't like to play when prices stop at support or resistance levels. More often than not, prices reverse course rather than break through. The maximum portfolio exposure is +/- 200% on capital, the level of highest conviction.
➤ Conclusion: I'm looking for a bottoming VIX. If this occurs, I will jump in to short the market. If prices keep elevating I will miss out but I won't be kicking myself for it. Is Resistance really futile?
➤ I'm not a nerdy Star Trek fan but it seems the phrase about resistance is appropriate here. For the S&P500, price is challenging the upper ceiling of the range that has unfolded from the start of October.
➤ A higher high has developed due to the temporary intrusion above the resistance level. This is a basic requirement to confirm a longer term trend change. A major higher low is now required.
➤ The bluechip DJIA (DOW30) is leading the charge higher. This is a bit suspect given that you would expect the riskier indices such as the NASDAQ to lead in a bullish environment. This may be a temporary lag but we need to keep an eye on it.
➤ I now hold zero exposure having exited my S&P500 position at resistance. I don't like to play when prices stop at support or resistance levels. More often than not, prices reverse course rather than break through. The maximum portfolio exposure is +/- 200% on capital, the level of highest conviction.
➤ Conclusion: I'm looking for a bottoming VIX. If this occurs, I will jump in to short the market. If prices keep elevating I will miss out but I won't be kicking myself for it. Is Resistance really futile?
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✅ Copy My Trades @ eToro, www.etoro.com/people/mrstocky
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Not Investment Advice
✅ Copy My Trades @ eToro, www.etoro.com/people/mrstocky
✅ Verified Track Record 📈
Not Investment Advice