Looks like we might get another leg lower before a big relief rally starting in June (most likely during OPEX).
20sma continued decline.
HUGE sell off today after JPOW's remarks yesterday. Why were they not reflected in price yesterday?
"I thought we were gonna have a relief rally after yesterday's bullish run!"
Vanna, Charm, dealer positioning, hedges unwinding.
It's the same story over and over and over.
Bulls needed to get a huge run over the 20sma and recapture it to the upside. They failed to do that.
The "rally" that took place over the last week was weak. And it's ominously telling of the further decline that is to come.
Seasonality is usually bullish to end the month, but without recapture of that 20d sma, further decline is coming. The lows will be revisited and will likely grind down lower.
This is a grinding bear market with occasional rallies here and there. I have a feeling the next face ripper rally will be around June OPEX, where people are going to be overly hedged and all that unwinding into OPEX will lead to explosive movement upwards (coupled with tech earnings imo).
Supports listed as always.
Unless bulls can explosively move markets higher into tomorrow OPEX and beyond into next week, this market will continue downward as listed above.
Best of luck traders.
If you're a long term investor, just be in cash.
You remain in cash until FED reverses course.
There are NO exceptions to this rule.
DO NOT FIGHT THE FED!
I will reiterate: The FED HAS BEEN CLEAR! They are removing support/liquidity from the markets - the same support/liquidity that propped up the markets to bubble like levels especially the past two years.
Now is not the time to yolo on calls. And now is not the time to yolo on puts either. It is a grinding bear. Only experienced traders should trade this.
The rest of you should be in cash again as listed above.
You're welcome.
20sma continued decline.
HUGE sell off today after JPOW's remarks yesterday. Why were they not reflected in price yesterday?
"I thought we were gonna have a relief rally after yesterday's bullish run!"
Vanna, Charm, dealer positioning, hedges unwinding.
It's the same story over and over and over.
Bulls needed to get a huge run over the 20sma and recapture it to the upside. They failed to do that.
The "rally" that took place over the last week was weak. And it's ominously telling of the further decline that is to come.
Seasonality is usually bullish to end the month, but without recapture of that 20d sma, further decline is coming. The lows will be revisited and will likely grind down lower.
This is a grinding bear market with occasional rallies here and there. I have a feeling the next face ripper rally will be around June OPEX, where people are going to be overly hedged and all that unwinding into OPEX will lead to explosive movement upwards (coupled with tech earnings imo).
Supports listed as always.
Unless bulls can explosively move markets higher into tomorrow OPEX and beyond into next week, this market will continue downward as listed above.
Best of luck traders.
If you're a long term investor, just be in cash.
You remain in cash until FED reverses course.
There are NO exceptions to this rule.
DO NOT FIGHT THE FED!
I will reiterate: The FED HAS BEEN CLEAR! They are removing support/liquidity from the markets - the same support/liquidity that propped up the markets to bubble like levels especially the past two years.
Now is not the time to yolo on calls. And now is not the time to yolo on puts either. It is a grinding bear. Only experienced traders should trade this.
The rest of you should be in cash again as listed above.
You're welcome.