We've been on quite the bullrun this year. I think it's time to go short.
Technically: For the first time this year, we have fallen below the 50ema on the Daily and failed to recover above it. We normally recover same day or next but its been 6 trading days below the 50ema. We made a lower low in June which signaled a sign of weakness in the uptrend. Now we are again making another low below August 19th low. I think its time we retest some support levels.
Fundamentally: - Fed has talked about tapering and possibly raising rates buy EOY/early next year - Covid Delta variant is on the rise, raising fear in multiple countries - US Congress has not yet voted on the Federal Budget and will most likely go into a Government Shutdown next month. - China cracking down on Tech + Evergrande 300b default is likely to make some waves globally
Levels to watch: - ~34000 (July Low) - ~33200 (May High, June Low, 200 ema) - ~31200 (New year consolidation range) - ~29600 (Pre-covid High, Feb Low)
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i didnt clean up my chart or mark all my levels before making this
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First support hit
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nice wick back up today. Close right around 50 ema on the daily. Likely a lower high here but this week should tell.
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Down day.
Weekly chart, looks like if we could be headed towards weekly 20ema. about 4.4% down from value right now. Or about 33200 june low and daily 200ema