Dear Mr. Market,
1. I hate the way you always seem to rise, even when you're supposed to fall.
2. I hate the way you make me scratch my head, when price action makes no sense at all.
3. I hate the way you brand me a contrarian, even though we all know the real economy is dead.
4. I hate the fact that you only seem to move, off of sentiment from the FED.
5. I hate that you give me road rage, when pushing my shopping cart at the grocery store.
6. I hate that you no longer care about fundamentals, and now you've made technicals a bore.
7. I hate the way that price action now controls sentiment, and not the other way around.
8. I hate when you squeeze me out of my short, even when support clearly hasn't been found.
9. I hate your stubborn attitude, when all the facts that are stacked against you stand tall.
10. But, most of all, Mr. Market, I hate the way I don't hate you, not even a little, not even at all.
Yours Truly,
The Bears
1. I hate the way you always seem to rise, even when you're supposed to fall.
2. I hate the way you make me scratch my head, when price action makes no sense at all.
3. I hate the way you brand me a contrarian, even though we all know the real economy is dead.
4. I hate the fact that you only seem to move, off of sentiment from the FED.
5. I hate that you give me road rage, when pushing my shopping cart at the grocery store.
6. I hate that you no longer care about fundamentals, and now you've made technicals a bore.
7. I hate the way that price action now controls sentiment, and not the other way around.
8. I hate when you squeeze me out of my short, even when support clearly hasn't been found.
9. I hate your stubborn attitude, when all the facts that are stacked against you stand tall.
10. But, most of all, Mr. Market, I hate the way I don't hate you, not even a little, not even at all.
Yours Truly,
The Bears
Comment:
Starting to look like a stalemate at the convergence point of the long-term and medium-term resistance trendlines. Where do the bulls go from here?
Comment:
Comment:
Extremely muted price action today. Volume is terrible as participation seemingly implodes. As it appears, there's nothing overhead stopping the bulls from taking this to the moon. But, we're stuck at the top of the megaphone. All other resistances have been broken, however, we saw a massive rejection on Monday after we breached current levels. Frankly, I'm surprised larger funds aren't lining up to hedge their YOY gains with Vix with the majors at these levels. What a peculiar economic landscape for funds to be risk on. Something just doesn't feel quite right about what I'm seeing...
Comment:
Seeing some notable weakness as we approach power hour...
Comment:
Comment:
We're sitting just north of the 21 period EMA on the hourly (354.75), which means, technically, we're still trending higher on that timeframe. But, the current resistance level is going to bring about heavy selling pressure specifically because of where we are on the monthly timeframe, and within the megaphone pattern. That means massive moves, and most likely to the downside. The next real support is still at 320, and that hasn't changed. I expect a break below 350 imminently...
Comment:
The 100 period MA on the 15 minute (355.20), is holding up as strong interim support. If we lose 355, things could get ugly (for a change). Vix is catching a bid here as we approach the close...
Comment:
Comment:
Comment:
We're getting panic bid at the moment in the final minutes of trade. Vix getting hammered back to a 23 handle. Long-term resistance still holding up. But, the bulls clearly have no intention of letting off the gas...
Comment:
That's all folks! It was a fairly quiet day and we hovered around the long-term resistance level/top of the megaphone for the basically entire day. Not much to write home about. Jobless claims are out tomorrow so it should be very interesting to see how the "recovery" is progressing. We're still seeing numbers 4 times pre-lockdown levels, so I suspect it's not going to be good.
Thanks for your time today guys! I hope you enjoyed the analysis.
See you tomorrow. Cheers, Michael.
Thanks for your time today guys! I hope you enjoyed the analysis.
See you tomorrow. Cheers, Michael.
Personally, I'm observing this resistance line as cyclical and it goes back to 2011. I don't see it breaking, and if the bulls epic November rally loses traction before month end, the downside is absolutely gargantuan.
Stay tuned for live updates today, and as always, thanks for your time guys! If you enjoyed today's analysis, please hit the Like button and subscribe to our profile. The information and analysis shared in this post is not financial advice. Always conduct your own analysis and research.