I want to make this short and sweet. Smart money is simply not buying here. Let's take a look at the RSI level on the 4 hour chart. I have circled every area that the RSI has been at these levels in the past. See the correlation of price action shortly after. Sure I am a long term bull and the March dip is over.... but we ripped a little too far too fast. As the megaphone is running out of room, I do believe for the short term we will stay inside of it. I will remain bearish until the 401 gap is filled. It may not be next week or the week after but it will get filled.
Back out of the 4 hour chart and try going to a weekly. 401 gap fill is not a bounce and go level. It needs to come way below that.
marketaction_live
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Not all gaps need to be filled. Statistically only 80% gaps get filled. But continuous 11 Green Day’s should definitely required a small pullback... Looking at stochastics they are ready to cross over. SPY is running too hot and stretched like a rubber band since it’s last support it need to close some gap to release some tension.
roseolivia09
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good work
MyMIWallet
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I've been talking about this all week... every time we have reached these heights, we see a $10 drop at least
mohamedm59307
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@MillennialInvestmentsPros, Roughly over how many trading sessions does it drop that $10?
MyMIWallet
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@mohamedm59307, When it begins, for the past 2 years, it has dropped $10-$15 dollars. But the fear from it may cause from even more.
MangoMark
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With all of the stimulus money pouring into the market, you can expect the upward trend to continue for a while. Millions of stimulus checks got mailed out this week. It only makes sense that much of it will end up in the market over the coming weeks or months. Be careful about shorts or puts on the SPY.
Back in May, June, aug, we created gaps too in spy, then sept pull backed happened, most those gaps didn't filled. Then we created more above 360. And still not filled, in time eventually it will but that could take years. A test retracement is good and most likely, 402 is possible puts vix as a hedge . Why not . Then tech will rally more . Feds pumping