- Don't get fooled by the price action in last three days. Price below daily moving averages and it was time for some relief rally that got sold in a jiffy trapping both bulls and bears alike.
- Price action on 3D timeframe is similar to 2018 crash. Below 3840, significant downside likely. My target would be 3500.
- if it continues to build above 3840, then we have a real chance at higher highs. but I don't see that happening quickly...so choppy fades followed by short squeeze and crash like today's to follow until market structure improves. If you don't have stomach for volatility, go away for a few weeks and place buy orders around 3500 :)
Trade active:
they tried to take this above 3930, but failed. unless there is a big flush tomorrow, price is now showing divergence, which increases odds of short squeeze. Growth names today showed good strength and S&P leaders held up above the lower range. That can change quickly, but shorts also need to be careful with overexposure to the downside.
Comment:
big flush right on cue...bulls have surrendered and bears running amok. 3930 needs to be captured quickly or else down we go again to 3730
Comment:
As predicted, 3930 is captured so selling should stop for a bit, but by no means selling is done yet. If bulls fail to push this to 4000, downside risk increases. below likely to get ugly below 3840
Comment:
As expected price is back to where it was 3 weeks back, only more bearish now. flush likely below 3840...target still remains 3500 on the next leg down.
